Income Taxes (Tables)

12 Months Ended

Mar. 31, 2015

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense consists of the following:



	Successor															Predecessor
	Year Ended March 31,			Three Months Ended March 31,						Year Ended December 31,			87 Days Ended December 31,			191 Days Ended July 10,			Three Months Ended March 31,			Year Ended December 31,
	2015			2014			2013 (Unaudited)			2013			2012			2013			2013 (Unaudited)			2012
				(in millions)
Current income tax (expense) benefit
Federal	$	5		$	—		$	(2	)	$	1		$	(3	)	$	2		$	(8	)	$	34
State	(39		)	(10		)	—			(13		)	—			(17		)	(6		)	22
Total current income tax (expense) benefit	(34		)	(10		)	(2		)	(12		)	(3		)	(15		)	(14		)	56
Deferred income tax benefit (expense)
Federal	491			(48		)	1			(46		)	(1		)	(1,402		)	(19		)	(199		)
State	118			2			—			14			—			(184		)	(5		)	(10		)
Total deferred income tax benefit (expense)	609			(46		)	1			(32		)	(1		)	(1,586		)	(24		)	(209		)
Foreign income tax expense	(1		)	—						(1		)	—			—			—			(1		)
Total income tax benefit (expense)	$	574		$	(56	)	$	(1	)	$	(45	)	$	(4	)	$	(1,601	)	$	(38	)	$	(154	)

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,			Three Months Ended March 31,						Year Ended December 31,			87 Days Ended December 31,			191 Days Ended July 10,			Three Months Ended March 31,			Year Ended December 31,
	2015			2014			2013 (Unaudited)			2013			2012			2013			2013 (Unaudited)			2012
				(in millions)
Income tax benefit (expense) at the federal statutory rate	$	1,372		$	33		$	3		$	635		$	8		$	(155	)	$	212		$	1,460
Effect of:
State income taxes, net of federal income tax effect	124			(4		)	—			47			—			(18		)	16			137
State law changes, net of federal income tax effect	4			5			—			10			—			—			—			(5		)
Reduction (increase) in liability for unrecognized tax benefits	1			—			—			2			—			(7		)	—			38
Change in valuation allowance	(911		)	(82		)	—			(708		)	(4		)	(1,410		)	(265		)	(1,756		)
Other, net	(16		)	(8		)	(4		)	(31		)	(8		)	(11		)	(1		)	(28		)
Income tax benefit (expense)	$	574		$	(56	)	$	(1	)	$	(45	)	$	(4	)	$	(1,601	)	$	(38	)	$	(154	)
Effective income tax rate	14.6		%	(58.9		)%	(12.5		)%	(2.5		)%	(17.4		)%	361.4		%	(6.3		)%	(3.7		)%

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,		Three Months Ended March 31,			Year Ended December 31,			191 Days Ended July 10,			Three Months Ended March 31,			Year Ended December 31,
	2015		2014			2013			2013			2013 (Unaudited)			2012
			(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, 2015 and 2014, along with the income tax effect of each, were as follows:



	Successor
	March 31, 2015						March 31, 2014
	Current			Long-Term			Current			Long-Term
	(in millions)
Deferred tax assets
Net operating loss carryforwards	$	—		$	8,155		$	—		$	7,264
Tax credit carryforwards	—			381			—			374
Capital loss carryforwards	—			84			—			82
Property, plant and equipment	—			261			—			500
Debt obligations	—			419			—			598
Deferred rent	—			470			—			474
Pension and other postretirement benefits	—			385			—			252
Accruals and other liabilities	637			561			738			601
	637			10,716			738			10,145
Valuation allowance	(509		)	(8,371		)	(522		)	(7,175		)
	128			2,345			216			2,970
Deferred tax liabilities
FCC licenses	—			12,558			—			12,158
Trademarks	—			1,725			—			2,461
Intangibles	—			1,658			—			2,248
Other	66			302			88			310
	66			16,243			88			17,177
Current deferred tax asset	$	62					$	128
Long-term deferred tax liability				$	13,898					$	14,207

Summary of Income Tax Contingencies

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



	Successor
	Year Ended March 31,			Three Months Ended March 31,
	2015			2014
				(in millions)
Balance at beginning of period	$	160		$	166
Additions based on current year tax positions	5			—
Additions based on prior year tax positions	3			1
Reductions for prior year tax positions	(3		)	(1		)
Reductions for settlements	(1		)	—
Reductions for lapse of statute of limitations	(1		)	(6		)
Balance at end of period	$	163		$	160

- 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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