INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of provision (benefit) for income taxes

The (benefit) provision for income taxes consisted of the following for the years ended December 31, 2020, 2019, and 2018 (in millions):

	2020		2019		2018
Current (benefit) provision for income taxes:
Federal	$	(126)	$	(89)	$	59
State	9		(2)		8
	(117)		(91)		67
Deferred benefit for income taxes:
Federal	(584)		(4)		(69)
State	(19)		(1)		(34)
	(603)		(5)		(103)
Benefit for income taxes	$	(720)	$	(96)	$	(36)

Schedule of reconciliation of federal income taxes at the applicable statutory rate to the recorded provision from continuing operations

The following is a reconciliation of federal income taxes at the applicable statutory rate to the recorded provision:

	2020		2019		2018
Federal statutory rate	21.0	%	21.0	%	21.0	%
Adjustments:
Valuation allowance (a)	(6.1)	%	(237.1)	%	0.7	%
State income taxes, net of federal tax benefit (b)	4.0	%	56.6	%	(8.8)	%
Net operating loss carryback (c)	1.9	%	—	%	—	%
Federal tax credits (d)	1.7	%	(684.6)	%	(19.9)	%
Noncontrolling interest (e)	0.7	%	(138.9)	%	(0.3)	%
Change in unrecognized tax benefits (f)	(0.2)	%	72.2	%	—	%
Effect of consolidated VIEs (g)	(0.1)	%	46.3	%	1.6	%
Stock-based compensation	(0.1)	%	(15.9)	%	0.5	%
Spectrum sales (h)	—	%	(386.7)	%	(5.8)	%
Nondeductible items (i)	—	%	192.7	%	0.4	%
Capital loss carryback (j)	—	%	(26.0)	%	—	%
Federal tax reform (k)	—	%	—	%	(1.4)	%
Other	0.1	%	(3.0)	%	0.3	%
Effective income tax rate	22.9	%	(1,103.4)	%	(11.7)	%

(a)Our 2020 income tax provision includes a $192 million addition related to an increase in valuation allowance primarily due to the change in judgement in the realizability of certain deferred tax assets resulting from the reduction in forecast of future operating income and the RSN impairment. Our 2019 income tax provision included a $16 million benefit related to a release of valuation allowance on certain state net operating losses where utilization was expected as a result of a business combination.

(b)Included in state income taxes are deferred income tax effects related to certain acquisitions, intercompany mergers and/or impact of changes in apportionment.

(c)Our 2020 provision includes a $61 million benefit as result of the CARES Act allowing for the 2020 federal net operating loss to be carried back to the pre-2018 years when the federal tax rate was 35%.

(d)Our 2020, 2019, and 2018 income tax provisions include a benefit of $42 million, $57 million, and $58 million, respectively, related to investments in sustainability initiatives whose activities qualify for federal income tax credits through 2021.

(e)Our 2020 and 2019 income tax provisions include a $23 million and a $12 million benefit, respectively, related to noncontrolling interest of various partnerships.

(f)Our 2020 and 2019 income tax provisions include a $5 million and $4 million additions, respectively, related to tax positions of prior tax years.

(g)Certain of our consolidated VIEs incur expenses that are not attributable to non-controlling interests because we absorb certain related losses of the VIEs. These expenses are not tax-deductible by us, and since these VIEs are treated as pass-through entities for income tax purposes, deferred income tax benefits are not recognized.

(h)Our 2019 income tax provision includes a benefit of $34 million related to the treatment of the gain from the sale of certain broadcast spectrum in connection with the Broadcast Incentive Auction.

(i)Our 2019 income tax provision includes a $17 million addition primarily related to regulatory costs, executive compensation and other not tax-deductible expenses.

(j)Our 2019 income tax provision includes a $2 million benefit related to capital losses that will be carried back to the pre-2018 tax years when the federal tax rate was 35%.

(k)Our 2018 income tax provision includes a non-recurring benefit of $4 million to reflect the effect of the Tax Reform enacted on December 22, 2017.

Schedule of total deferred tax assets and deferred tax liabilities

Total deferred tax assets and deferred tax liabilities as of December 31, 2020 and 2019 were as follows (in millions):

	2020		2019
Deferred Tax Assets:
Net operating losses:
Federal	$	22	$	22
State	130		92
Goodwill and intangible assets	9		10
Basis in DSH	834		—
Tax Credits	67		—
Settlement and other accruals	7		39
Other	46		28
	1,115		191
Valuation allowance for deferred tax assets	(252)		(65)
Total deferred tax assets	$	863	$	126
Deferred Tax Liabilities:
Goodwill and intangible assets	$	(402)	$	(415)
Property & equipment, net	(221)		(90)
Other	(43)		(28)
Total deferred tax liabilities	(666)		(533)
Net deferred tax assets (liabilities)	$	197	$	(407)

Schedule of activity related to accrued unrecognized tax benefits

The following table summarizes the activity related to our accrued unrecognized tax benefits (in millions):

	2020		2019		2018
Balance at January 1,	$	11	$	7	$	7
Additions related to prior year tax positions	5		4		—
Additions related to current year tax positions	3		—		2
Reductions related to prior year tax positions	(1)		—		(1)
Reductions related to settlements with taxing authorities	(4)		—		—
Reductions related to expiration of the applicable statute of limitations	(3)		—		(1)
Balance at December 31,	$	11	$	11	$	7