Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.10.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule of components of income tax expense
We file a consolidated federal income tax return for all of our wholly-owned subsidiaries, including Sirius XM. Income tax expense consisted of the following:
 
For the Years Ended December 31,
 
2018
 
2017
 
2016
Current taxes:
 
 
 
 
 
Federal
$

 
$

 
$

State
12,038

 
(32,579
)
 
(21,782
)
Foreign
(144
)
 
(202
)
 
(383
)
Total current taxes
11,894

 
(32,781
)
 
(22,165
)
Deferred taxes:
 
 
 
 
 
Federal
(258,930
)
 
(564,171
)
 
(304,179
)
State
2,355

 
(19,349
)
 
(19,383
)
Total deferred taxes
(256,575
)
 
(583,520
)
 
(323,562
)
Total income tax expense
$
(244,681
)
 
$
(616,301
)
 
$
(345,727
)
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,
 
2018
 
2017
 
2016
Federal tax expense, at statutory rate
21.0
 %
 
35.0
 %
 
35.0
 %
State income tax expense, net of federal benefit
3.6
 %
 
2.8
 %
 
2.8
 %
Change in valuation allowance
1.0
 %
 
(0.1
)%
 
 %
Tax credits
(6.8
)%
 
(1.7
)%
 
(6.1
)%
Stock-based compensation
(3.1
)%
 
(2.9
)%
 
(0.6
)%
Federal tax reform - deferred rate change
 %
 
14.6
 %
 
 %
Other, net
1.5
 %
 
1.0
 %
 
0.6
 %
Effective tax rate
17.2
 %
 
48.7
 %
 
31.7
 %
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,
 
2018
 
2017
Deferred tax assets:
 
 
 
Net operating loss carryforwards and tax credits
$
952,316

 
$
686,277

Deferred revenue
88,502

 
500,461

Accrued bonus
26,825

 
24,150

Expensed costs capitalized for tax
15,978

 
13,914

Investments
11,965

 
29,881

Stock based compensation
55,436

 
50,065

Other
5,940

 
20,819

Total deferred tax assets
1,156,962

 
1,325,567

Deferred tax liabilities:
 
 
 
Depreciation of property and equipment
(230,053
)
 
(156,003
)
FCC license
(515,627
)
 
(506,578
)
Other intangible assets
(101,650
)
 
(105,471
)
Other
2,049

 
(7,273
)
Total deferred tax liabilities
(845,281
)
 
(775,325
)
Net deferred tax assets before valuation allowance
311,681

 
550,242

Valuation allowance
(66,229
)
 
(52,883
)
Total net deferred tax asset
$
245,452

 
$
497,359

Summary of income tax contingencies
Changes in our uncertain income tax positions, from January 1 through December 31 are set forth below:
 
2018
 
2017
Balance, beginning of year
$
334,254

 
$
303,583

Increases in tax positions for prior years
65,099

 
14,530

Increases in tax positions for current years
14,594

 
16,141

Decreases in tax positions for prior years
(26,798
)
 

Balance, end of year
$
387,149

 
$
334,254