Income Taxes (Tables)

12 Months Ended

Mar. 31, 2017

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense consists of the following:



	Year Ended March 31,
	2017			2016			2015
	(in millions)
Current income tax (expense) benefit
Federal	$	50		$	13		$	5
State	(50		)	(30		)	(39		)
Total current income tax (expense) benefit	—			(17		)	(34		)
Deferred income tax (expense) benefit
Federal	(284		)	(206		)	491
State	(149		)	83			118
Total deferred income tax (expense) benefit	(433		)	(123		)	609
Foreign income tax expense	(2		)	(1		)	(1		)
Total income tax (expense) benefit	$	(435	)	$	(141	)	$	574

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

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



	Year Ended March 31,
	2017			2016			2015
	(in millions)
Income tax benefit at the federal statutory rate	$	270		$	649		$	1,372
Effect of:
State income taxes, net of federal income tax effect	24			38			124
State law changes, net of federal income tax effect	4			20			4
(Increase) reduction in liability for unrecognized tax benefits	(14		)	(4		)	1
Credit for increasing research activities	15			14			—
Tax (expense) benefit from organizational restructuring	(118		)	90			—
Change in federal and state valuation allowance	(615		)	(939		)	(911		)
Other, net	(1		)	(9		)	(16		)
Income tax (expense) benefit	$	(435	)	$	(141	)	$	574
Effective income tax rate	(56.4		)%	(7.6		)%	14.6		%

Schedule of Income Tax Expense Benefit Allocated to Other Items

Income tax expense allocated to other items was as follows:



	Year Ended March 31,
	2017			2016		2015
	(in millions)
Unrecognized net periodic pension and other postretirement benefit cost⁽¹⁾	$	(24	)	$	—	$	—

_______________


(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, 2017 and 2016, along with the income tax effect of each, were as follows:



	March 31,
	2017			2016
	(in millions)
Deferred tax assets
Net operating loss carryforwards	$	6,812		$	8,057
Tax credit carryforwards	340			384
Capital loss carryforwards	1			83
Property, plant and equipment	2,192			1,230
Debt obligations	205			—
Deferred rent	402			438
Pension and other postretirement benefits	332			378
Accruals and other liabilities	1,454			1,376
	11,738			11,946
Valuation allowance	(10,477		)	(9,793		)
	1,261			2,153
Deferred tax liabilities
FCC licenses	12,876			12,738
Trademarks	1,712			1,718
Intangibles	771			1,166
Debt obligations	—			58
Other	318			432
	15,677			16,112

Long-term deferred tax liability	$	14,416		$	13,959

Summary of Income Tax Contingencies

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



	Year Ended March 31,
	2017			2016
	(in millions)
Balance at beginning of period	$	166		$	163
Additions based on current year tax positions	15			—
Additions based on prior year tax positions	10			5
Reductions for lapse of statute of limitations	(1		)	(2		)
Balance at end of period	$	190		$	166