Income Taxes (Tables)

3 Months Ended

Mar. 31, 2014

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Income tax expense consists of the following:



	Successor												Predecessor
	Three Months Ended March 31,						Year Ended December 31,			87 Days Ended December 31,			191 Days Ended July 10,			Three Months Ended March 31,			Years Ended December 31,
	2014			2013 (Unaudited)			2013			2012			2013			2013 (Unaudited)			2012			2011
	(in millions)
Current income tax (expense) benefit
Federal	$	—		$	(2	)	$	1		$	(3	)	$	2		$	(8	)	$	34		$	(1	)
State	(10		)	—			(13		)	—			(17		)	(6		)	22			(20		)
Total current income tax (expense) benefit	(10		)	(2		)	(12		)	(3		)	(15		)	(14		)	56			(21		)
Deferred income tax (expense) benefit
Federal	(48		)	1			(46		)	(1		)	(1,402		)	(19		)	(199		)	(136		)
State	2			—			14			—			(184		)	(5		)	(10		)	(95		)
Total deferred income tax expense	(46		)	1			(32		)	(1		)	(1,586		)	(24		)	(209		)	(231		)
Foreign income tax expense	—						(1		)	—			—			—			(1		)	(2		)
Total income tax expense	$	(56	)	$	(1	)	$	(45	)	$	(4	)	$	(1,601	)	$	(38	)	$	(154	)	$	(254	)

Factors Causing Variation in Effective Tax Rate From US Federal Statutory Rate

The differences that caused our effective income tax rates to vary from the 35% U.S. federal statutory rate for income taxes were as follows:



	Successor												Predecessor
	Three Months Ended March 31,						Year Ended December 31,			87 Days Ended December 31,			191 Days Ended July 10,			Three Months Ended March 31,			Years Ended December 31,
	2014			2013 (Unaudited)			2013			2012			2013			2013 (Unaudited)			2012			2011
	(in millions)
Income tax (expense) benefit at the federal statutory rate	$	33		$	3		$	635		$	8		$	(155	)	$	212		$	1,460		$	923
Effect of:
State income taxes, net of federal income tax effect	(4		)	—			47			—			(18		)	16			137			80
State law changes, net of federal income tax effect	5			—			10			—			—			—			(5		)	(38		)
Reduction (increase) in liability for unrecognized tax benefits	—			—			2			—			(7		)	—			38			(1		)
Tax expense related to equity awards	—			—			—			—			—			—			(15		)	(13		)
Change in valuation allowance	(82		)	—			(708		)	(4		)	(1,410		)	(265		)	(1,756		)	(1,221		)
Other, net	(8		)	(4		)	(31		)	(8		)	(11		)	(1		)	(13		)	16
Income tax expense	$	(56	)	$	(1	)	$	(45	)	$	(4	)	$	(1,601	)	$	(38	)	$	(154	)	$	(254	)
Effective income tax rate	(58.9		)%	(12.5		)%	(2.5		)%	(17.4		)%	361.4		%	(6.3		)%	(3.7		)%	(9.6		)%

Schedule of Income Tax Expense Benefit Allocated to Other Items [Text Block]

Income tax (expense) benefit allocated to other items was as follows:



	Successor						Predecessor
	Three Months Ended March 31,			Year Ended December 31,			191 Days Ended July 10,			Three Months Ended March 31,			Years Ended December 31,
	2014			2013			2013			2013 (Unaudited)			2012		2011
	(in millions)
Unrecognized net periodic pension and other postretirement benefit cost⁽¹⁾	$	—		$	(58	)	$	(18	)	$	(10	)	$	—	$	—
Unrealized holding gains/losses on securities⁽¹⁾	$	(1	)	$	(3	)	$	—		$	(1	)	$	—	$	(1	)

_______________


(1)	These amounts have been recognized in accumulated other comprehensive income (loss).

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The sources of the differences that give rise to the deferred income tax assets and liabilities as of March 31, 2014, December 31, 2013 and 2012, along with the income tax effect of each, were as follows:



	Successor ⁽¹⁾												Predecessor
	March 31, 2014						December 31, 2013						December 31, 2012
	Current			Long-Term			Current			Long-Term			Current			Long-Term
	(in millions)
Deferred tax assets
Net operating loss carryforwards	$	—		$	7,264		$	—		$	6,908		$	—		$	4,398
Tax credit carryforwards	—			374			—			374			—			431
Capital loss carryforwards	—			82			—			82			—			126
Property, plant and equipment	—			500			—			762			—			—
Debt obligations	—			598			—			633			—			—
Deferred rent	—			474			—			473			—			562
Pension and other postretirement benefits	—			252			—			194			—			430
Accruals and other liabilities	738			601			857			616			577			499
	738			10,145			857			10,042			577			6,446
Valuation allowance	(522		)	(7,175		)	(594		)	(7,004		)	(472		)	(5,183		)
	216			2,970			263			3,038			105			1,263
Deferred tax liabilities
Property, plant and equipment	—			—			—			—			—			420
FCC licenses	—			12,158			—			12,089			—			6,313
Trademarks	—			2,461			—			2,459			—			188
Intangibles	—			2,248			—			2,407			—			354
Investments	—			—			—			—			—			802
Other	88			310			77			310			104			233
	88			17,177			77			17,265			104			8,310
Current deferred tax asset	$	128					$	186					$	1
Long-term deferred tax liability				$	14,207					$	14,227					$	7,047

Summary of Income Tax Contingencies [Table Text Block]

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



	Successor						Predecessor
	Three Months Ended March 31,			Year Ended December 31,			191 Days Ended July 10,		Three Months Ended March 31,		Years Ended December 31,
	2014			2013			2013		2013 (Unaudited)		2012			2011
	(in millions)
Balance at beginning of period	$	166		$	—		$	171	$	171	$	225		$	228
Predecessor balance acquired in the SoftBank Merger	—			182			—		—		—			—
Additions based on current year tax positions	—			10			4		2		1			4
Additions based on prior year tax positions	1			—			7		7		1			4
Reductions for prior year tax positions	(1		)	—			—		—		(1		)	(1		)
Reductions for settlements	—			(23		)	—		—		(52		)	(2		)
Reductions for lapse of statute of limitations	(6		)	(3		)	—		—		(3		)	(8		)
Balance at end of period	$	160		$	166		$	182	$	180	$	171		$	225

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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