Qurate Retail, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

Income tax benefit (expense) differs from the amounts computed by applying the U.S. federal income tax rate of 35% as a result of the following:



	Years ended December 31,
	2013			2012		2011
	amounts in millions
Computed expected tax benefit (expense)	$	(249	)	(695	)	(329	)
Consolidation of previously held equity method affiliate	—			294		—
State and local income taxes, net of federal income taxes	(17		)	(11	)	(22	)
Foreign taxes, net of foreign tax credits	8			5		(3	)
Impairment of intangibles not deductible for tax purposes	(2		)	(29	)	—
Dividends received deductions	9			13		5
Alternative energy tax credits	58			48		3
Change in valuation allowance affecting tax expense	(32		)	(8	)	(15	)
Impact of change in state rate on deferred taxes	112			—		—
Other, net	(17		)	(11	)	9
Income tax benefit (expense)	$	(130	)	(394	)	(352	)

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities are presented below:



	December 31,
	2013			2012
	amounts in millions
Deferred tax assets:
Net operating and capital loss carryforwards	$	102		110
Foreign tax credit carryforwards	129			87
Accrued stock compensation	54			32
Other accrued liabilities	85			80
Other future deductible amounts	128			120
Deferred tax assets	498			429
Valuation allowance	(68		)	(52	)
Net deferred tax assets	430			377

Deferred tax liabilities:
Investments	569			492
Intangible assets	2,281			2,751
Discount on exchangeable debentures	958			890
Deferred gain on debt retirements	313			321
Other	73			44
Deferred tax liabilities	4,194			4,498
Net deferred tax liabilities	$	3,764		4,121

The Company's deferred tax assets and liabilities are reported in the accompanying consolidated balance sheets as follows:



	December 31,
	2013			2012
	amounts in millions
Current deferred tax asset of TripAdvisor (1)	(5		)	—
Current deferred tax liabilities	925			912
Long-term deferred tax liabilities	2,844			3,209
Net deferred tax liabilities	$	3,764		4,121

(1) TripAdvisor's deferred tax asset is not offset with Liberty's deferred tax liabilities as TripAdvisor is not included in the group tax return of Liberty. TripAdvisor's deferred tax asset has been included in other current assets in the accompanying consolidated balance sheet.

Summary of Income Tax Contingencies [Table Text Block]

A reconciliation of unrecognized tax benefits is as follows:



	Years ended December 31,
	2013			2012
	amounts in millions
Balance at beginning of year	$	146		123
Additions based on tax positions related to the current year	31			12
Additions for tax positions of prior years	5			2
Reductions for tax positions of prior years	(7		)	(4	)
Acquisition of TripAdvisor	—			24
Lapse of statute and settlements	(15		)	(11	)
Balance at end of year	$	160		146

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Income tax benefit (expense) consists of:



	Years ended December 31,
	2013			2012		2011
	amounts in millions
Current:
Federal	$	(128	)	(214	)	(156	)
State and local	(36		)	(27	)	(32	)
Foreign	(102		)	(140	)	(120	)
	$	(266	)	(381	)	(308	)
Deferred:
Federal	$	(11	)	(31	)	(42	)
State and local	122			11		(6	)
Foreign	25			7		4
	136			(13	)	(44	)
Income tax benefit (expense)	$	(130	)	(394	)	(352	)

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

The following table presents a summary of our domestic and foreign earnings from continuing operations before income taxes:



	Years ended December 31,
	2013		2012	2011
	amounts in millions
Domestic	$	553	1,769	770
Foreign	157		216	169
Total	$	710	1,985	939

- 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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