XML 77 R64.htm IDEA: XBRL DOCUMENT v2.4.0.6
Income Taxes (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Federal      
Current $ 57,000,000 $ (49,000,000) $ 384,000,000
Deferred 361,000,000 401,000,000 145,000,000
State      
Current 15,000,000 25,000,000 67,000,000
Deferred 33,000,000 (6,000,000) (13,000,000)
Foreign      
Current 7,000,000 4,000,000  
Total income tax expense 473,000,000 375,000,000 583,000,000
Income tax expense in the consolidated statements of income:      
Attributable to income 473,000,000 375,000,000 583,000,000
Stockholders' equity:      
Compensation expense for tax purposes in excess of amounts recognized for financial reporting purposes (18,000,000) (13,000,000) (12,000,000)
Tax effect of the change in accumulated other comprehensive loss (434,000,000) (535,000,000) (34,000,000)
Reconciliation of the statutory federal income tax rate to effective income tax rate      
Statutory federal income tax rate (as a percent) 35.00% 35.00% 35.00%
State income taxes, net of federal income tax benefit (as a percent) 2.50% 1.30% 1.90%
Change in tax treatment of Medicare subsidy (as a percent)     0.30%
Nondeductible acquisition related costs (as a percent)   0.90% 0.20%
Nondeductible compensation pursuant to executive compensation limitations (as a percent) 0.50% 0.40% 0.20%
Reversal of valuation allowance on auction rate securities (as a percent) (1.20%)    
Foreign income taxes (as a percent) 0.30% 0.40%  
Foreign valuation allowance (as a percent)   0.80%  
Other, net (as a percent) 0.70% 0.80% 0.50%
Effective income tax rate (as a percent) 37.80% 39.60% 38.10%
Recognition of additional income tax expense due to non-deductible transaction cost related to recent acquisitions   24,000,000 4,000,000
Benefit on sale of auction rate securities, net of valuation allowance 12,000,000    
Expense on reversal of valuation allowance on auction rate securities 6,000,000    
Reversal of valuation allowance 16,000,000 16,000,000  
Deferred tax assets      
Postretirement and pension benefit costs 2,327,000,000 2,040,000,000  
Net operating loss carryforwards 1,764,000,000 2,492,000,000  
Other employee benefits 193,000,000 122,000,000  
Other 754,000,000 802,000,000  
Gross deferred tax assets 5,038,000,000 5,456,000,000  
Less valuation allowance (281,000,000) (293,000,000)  
Net deferred tax assets 4,757,000,000 5,163,000,000  
Deferred tax liabilities      
Property, plant and equipment, primarily due to depreciation differences (3,983,000,000) (3,638,000,000)  
Goodwill and other intangible assets (3,316,000,000) (4,144,000,000)  
Other (211,000,000) (162,000,000)  
Gross deferred tax liabilities (7,510,000,000) (7,944,000,000)  
Net deferred tax liability (2,753,000,000) (2,781,000,000)  
Long-term deferred tax liability 3,644,000,000 3,800,000,000  
Net current deferred tax asset 891,000,000 1,019,000,000  
Deferred tax asset valuation allowance from future income of a special character   8,000,000  
NOLs      
Valuation allowance, primarily related to state NOLs 281,000,000    
Assumed in Qwest and Savvis acquisitions   206,000,000  
Increase in tax positions taken in the current year 3,000,000    
Deferred tax asset valuation allowance adjustment (12,000,000)    
Summary of reconciliation of the change in gross unrecognized tax benefits activity      
Unrecognized tax benefits, beginning of year 111,000,000 311,000,000  
Assumed in Qwest and Savvis acquisitions   206,000,000  
Increase in tax positions taken in the current year 3,000,000    
Decrease due to the reversal of tax positions taken in a prior year (34,000,000) (13,000,000)  
Decrease from the lapse of statute of limitations (2,000,000) (1,000,000)  
Settlements   (392,000,000)  
Unrecognized tax benefits, end of year 78,000,000 111,000,000 311,000,000
Unrecognized tax benefits that would impact effective tax rate 52,000,000 118,000,000  
Accrued interest associated with unrecognized tax benefits 33,000,000 33,000,000  
Amount of unrecognized tax benefit that may decrease within the next twelve months 32,000,000    
State Jurisdiction
     
NOLs      
Net operating losses 7,000,000,000    
federal
     
NOLs      
Net operating losses $ 4,700,000,000