Sirius XM Holdings Inc. Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Components of Income Tax Expense

Income tax expense consisted of the following:


	For the Years Ended December 31,
	2025		2024		2023
Current taxes:
Federal	$	170	$	297	$	205
State	49		72		57
Foreign	3		2		—
Total current taxes expense	222		371		262
Deferred taxes:
Federal	23		(165)		(30)
State	6		4		(10)
Total deferred taxes (benefit) expense	29		(161)		(40)
Total income tax expense	$	251	$	210	$	222

Schedule of Effective Income Tax Rate Reconciliation

The following table presents a reconciliation of the U.S. federal statutory tax rate and our effective tax rate:


	For the Years Ended December 31,
	2025				2024				2023
U.S. Federal Statutory Tax Rate	$	222	21.0	%	$	(391)	21.0	%	$	254	21.0	%
Domestic Federal
Tax Credits
Tax Equity Credit Investments	(27)		(2.5)	%	(36)		1.9	%	(18)		(1.5)	%
Research and Development Tax Credit	(14)		(1.4)	%	(26)		1.4	%	(33)		(2.7)	%
Nontaxable or Nondeductible Items
Impairments	—		—	%	592		(31.8)	%	—		—	%
Current Year Stock Options net of APIC	25		2.3	%	20		(1.0)	%	20		1.7	%
Convertible Notes	—		—	%	(23)		1.2	%	32		2.6	%
Other	1		0.1	%	1		(0.1)	%	1		0.1	%
Effect of Cross-Border Tax Laws	(1)		(0.1)	%	(3)		0.2	%	(7)		(0.6)	%
State and Local Income Tax, Net of Federal Income Tax Effects	49		4.6	%	51		(2.9)	%	36		2.9	%

Changes in Unrecognized Tax Benefits	(4)		(0.3)	%	5		(0.3)	%	(54)		(4.5)	%
Other	—		0.1	%	20		(0.9)	%	(9)		(0.7)	%
Effective tax rate	$	251	23.8	%	$	210	(11.3)	%	$	222	18.3	%

(1)State taxes in California, New York, New Jersey, Florida, Tennessee, and Illinois made up the majority (greater than 50%) of the tax effect in this category.

Schedule of Cash Flow, Supplemental Disclosures

The following table presents additional supplemental cash flow information for the years ended December 31, 2025, 2024, and 2023:


	For the Years Ended December 31,
	2025		2024		2023
Income tax paid:
Federal	$	105	$	165	$	119
State	50		53		46
Foreign	1		—		—
Total income taxes paid	$	156	$	218	$	165

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities, shown before jurisdictional netting, are presented below:


	For the Years Ended December 31,
	2025		2024
Deferred tax assets:
Net operating loss carryforwards and tax credits	$	317	$	321
Other accrued liabilities	28		44
Accrued stock compensation	56		53
Deferred revenue	40		46
Investments	102		102
Other future deductible amounts	171		117
Total deferred tax assets	714		683
Deferred tax liabilities:
Intangible assets	(2,529)		(2,550)
Fixed assets	(199)		(124)
Debt	(9)		(3)


Total deferred tax liabilities	(2,737)		(2,677)
Net deferred tax liabilities before valuation allowance	(2,023)		(1,994)
Valuation allowance	(87)		(93)
Total net deferred tax liability	$	(2,110)	$	(2,087)

Schedule of Uncertain Income Tax Positions

Changes in our unrecognized tax benefits and uncertain tax positions from January 1 through December 31 are set forth below:


	2025		2024
Balance, beginning of year	$	201	$	171
Increases in tax positions for prior years	—		5
Increases in tax positions for current year	9		27
Decreases in tax positions for prior years	(6)		—
Decreases in tax positions for current years	(1)		(2)
Decreases related to settlement with taxing authorities	(4)		—
Decreases related to statute of limitation lapses	(1)		—
Balance, end of year	$	198	$	201