Income Taxes (Tables)

12 Months Ended

Mar. 31, 2016

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense consists of the following:



	Successor															Predecessor
	Year Ended March 31,			Year Ended March 31,			Three Months Ended March 31,						Year Ended December 31,			191 Days Ended July 10,			Three Months Ended March 31,
	2016			2015			2014			2013 (Unaudited)			2013			2013			2013 (Unaudited)
	(in millions)
Current income tax (expense) benefit
Federal	$	13		$	5		$	—		$	(2	)	$	1		$	2		$	(8	)
State	(30		)	(39		)	(10		)	—			(13		)	(17		)	(6		)
Total current income tax (expense) benefit	(17		)	(34		)	(10		)	(2		)	(12		)	(15		)	(14		)
Deferred income tax (expense) benefit
Federal	(206		)	491			(48		)	1			(46		)	(1,402		)	(19		)
State	83			118			2			—			14			(184		)	(5		)
Total deferred income tax (expense) benefit	(123		)	609			(46		)	1			(32		)	(1,586		)	(24		)
Foreign income tax expense	(1		)	(1		)	—			—			(1		)	—			—
Total income tax (expense) benefit	$	(141	)	$	574		$	(56	)	$	(1	)	$	(45	)	$	(1,601	)	$	(38	)

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
	Year Ended March 31,			Year Ended March 31,			Three Months Ended March 31,						Year Ended December 31,			191 Days Ended July 10,			Three Months Ended March 31,
	2016			2015			2014			2013 (Unaudited)			2013			2013			2013 (Unaudited)
	(in millions)
Income tax (expense) benefit at the federal statutory rate	$	649		$	1,372		$	33		$	3		$	635		$	(155	)	$	212
Effect of:
State income taxes, net of federal income tax effect	38			124			(4		)	—			47			(18		)	16
State law changes, net of federal income tax effect	20			4			5			—			10			—			—
(Increase) reduction in liability for unrecognized tax benefits	(4		)	1			—			—			2			(7		)	—
Tax benefit from organizational restructuring	90			—			—			—			—			—			—
Change in valuation allowance	(939		)	(911		)	(82		)	—			(708		)	(1,410		)	(265		)
Other, net	5			(16		)	(8		)	(4		)	(31		)	(11		)	(1		)
Income tax (expense) benefit	$	(141	)	$	574		$	(56	)	$	(1	)	$	(45	)	$	(1,601	)	$	(38	)
Effective income tax rate	(7.6		)%	14.6		%	(58.9		)%	(12.5		)%	(2.5		)%	361.4		%	(6.3		)%

Schedule of Income Tax Expense Benefit Allocated to Other Items

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



	Successor										Predecessor
	Year Ended March 31,		Year Ended March 31,		Three Months Ended March 31,			Year Ended December 31,			191 Days Ended July 10,			Three Months Ended March 31,
	2016		2015		2014			2013			2013			2013 (Unaudited)
	(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)	These amounts have been recognized in accumulated other comprehensive loss.

Schedule of Deferred Tax Assets and Liabilities

The sources of the differences that give rise to the deferred income tax assets and liabilities as of March 31, 2016 and 2015, along with the income tax effect of each, were as follows:



	March 31, 2016			March 31, 2015
	Long-Term ⁽¹⁾			Current			Long-Term
	(in millions)
Deferred tax assets
Net operating loss carryforwards	$	8,057		$	—		$	8,155
Tax credit carryforwards	384			—			381
Capital loss carryforwards	83			—			84
Property, plant and equipment	1,230			—			261
Debt obligations	—			—			419
Deferred rent	438			—			470
Pension and other postretirement benefits	378			—			385
Accruals and other liabilities	1,376			637			561
	11,946			637			10,716
Valuation allowance	(9,793		)	(509		)	(8,371		)
	2,153			128			2,345
Deferred tax liabilities
FCC licenses	12,738			—			12,558
Trademarks	1,718			—			1,725
Intangibles	1,166			—			1,658
Debt obligations	58			—			—
Other	432			66			302
	16,112			66			16,243
Current deferred tax asset				$	62
Long-term deferred tax liability	$	13,959					$	13,898

Summary of Income Tax Contingencies

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



	Years Ended March 31,
	2016			2015
	(in millions)
Balance at beginning of period	$	163		$	160
Additions based on current year tax positions	—			5
Additions based on prior year tax positions	5			3
Reductions for prior year tax positions	—			(3		)
Reductions for settlements	—			(1		)
Reductions for lapse of statute of limitations	(2		)	(1		)
Balance at end of period	$	166		$	163