|
Income Taxes (Tables)
|
12 Months Ended |
|
Dec. 31, 2013
|
| Effective Income Tax Rate Reconciliation [Line Items] |
|
| Schedule of Components of Income Tax Expense (Benefit) |
Income tax expense (benefit) attributable to Holdings consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
2013 |
|
2012 |
|
2011 |
Current taxes: |
|
|
|
|
|
Federal |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
State |
5,359 |
|
|
1,319 |
|
|
3,229 |
|
Foreign |
(5,269 |
) |
|
2,265 |
|
|
2,741 |
|
Total current taxes |
90 |
|
|
3,584 |
|
|
5,970 |
|
Deferred taxes: |
|
|
|
|
|
Federal |
211,044 |
|
|
(2,729,823 |
) |
|
3,991 |
|
State |
48,743 |
|
|
(271,995 |
) |
|
4,273 |
|
Total deferred taxes |
259,787 |
|
|
(3,001,818 |
) |
|
8,264 |
|
Total income tax expense (benefit) |
$ |
259,877 |
|
|
$ |
(2,998,234 |
) |
|
$ |
14,234 |
|
|
| Schedule of Effective Income Tax Rate Reconciliation |
The following table indicates the significant elements contributing to the difference between the federal tax expense (benefit) at the statutory rate and at our effective rate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
2013 |
|
2012 |
|
2011 |
Federal tax expense, at statutory rate |
$ |
222,982 |
|
|
$ |
166,064 |
|
|
$ |
154,418 |
|
State income tax expense, net of federal benefit |
19,031 |
|
|
16,606 |
|
|
15,751 |
|
State income rate changes |
8,666 |
|
|
2,251 |
|
|
3,851 |
|
Non-deductible expenses |
9,545 |
|
|
477 |
|
|
457 |
|
Change in valuation allowance |
(4,228 |
) |
|
(3,195,651 |
) |
|
(166,452 |
) |
Other, net |
3,881 |
|
|
12,019 |
|
|
6,209 |
|
Income tax expense (benefit) |
$ |
259,877 |
|
|
$ |
(2,998,234 |
) |
|
$ |
14,234 |
|
|
| 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 are presented below:
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
2013 |
|
2012 |
Deferred tax assets: |
|
|
|
Net operating loss carryforwards |
$ |
2,207,583 |
|
|
$ |
2,493,239 |
|
GM payments and liabilities |
1,984 |
|
|
80,742 |
|
Deferred revenue |
606,430 |
|
|
511,700 |
|
Severance accrual |
388 |
|
|
46 |
|
Accrued bonus |
25,830 |
|
|
23,798 |
|
Expensed costs capitalized for tax |
22,679 |
|
|
26,569 |
|
Loan financing costs |
664 |
|
|
428 |
|
Investments |
45,078 |
|
|
39,915 |
|
Stock based compensation |
71,794 |
|
|
64,636 |
|
Other |
31,735 |
|
|
34,705 |
|
Total deferred tax assets |
3,014,165 |
|
|
3,275,778 |
|
Deferred tax liabilities: |
|
|
|
Depreciation of property and equipment |
(188,675 |
) |
|
(185,007 |
) |
FCC license |
(778,152 |
) |
|
(772,550 |
) |
Other intangible assets |
(233,983 |
) |
|
(165,227 |
) |
Total deferred tax liabilities |
(1,200,810 |
) |
|
(1,122,784 |
) |
Net deferred tax assets before valuation allowance |
1,813,355 |
|
|
2,152,994 |
|
Valuation allowance |
(7,831 |
) |
|
(9,835 |
) |
Total net deferred tax asset |
$ |
1,805,524 |
|
|
$ |
2,143,159 |
|
|
| Summary of Income Tax Contingencies |
Changes in our uncertain income tax positions, from January 1 through December 31 are presented below:
|
|
|
|
|
|
|
|
|
|
2013 |
|
2012 |
Balance, beginning of year |
$ |
1,432 |
|
|
$ |
1,432 |
|
Additions for tax positions from prior years |
— |
|
|
— |
|
Balance, end of year |
$ |
1,432 |
|
|
$ |
1,432 |
|
|
|
Sirius XM Radio Inc. [Member]
|
|
| Effective Income Tax Rate Reconciliation [Line Items] |
|
| Schedule of Effective Income Tax Rate Reconciliation |
Sirius XM and its wholly-owned subsidiaries are included in the consolidated federal income tax returns of Holdings. However, due to the differences in the Income before income taxes balances between Holdings and Sirius XM in our consolidated statements of comprehensive income, the following table shows the significant elements contributing to the difference between the federal tax expense (benefit) at the statutory rate and at Sirius XM's effective rate:
|
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|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
2013 |
|
2012 |
|
2011 |
Federal tax expense, at statutory rate |
$ |
67,684 |
|
|
$ |
166,064 |
|
|
$ |
154,418 |
|
State income tax expense, net of federal benefit |
4,467 |
|
|
16,606 |
|
|
15,751 |
|
State income rate changes |
8,666 |
|
|
2,251 |
|
|
3,851 |
|
Non-deductible expenses |
699 |
|
|
477 |
|
|
457 |
|
Change in valuation allowance |
(4,228 |
) |
|
(3,195,651 |
) |
|
(166,452 |
) |
Fair value of debt instrument |
178,704 |
|
|
— |
|
|
— |
|
Other, net |
3,885 |
|
|
12,019 |
|
|
6,209 |
|
Income tax expense (benefit) |
$ |
259,877 |
|
|
$ |
(2,998,234 |
) |
|
$ |
14,234 |
|
|