Registration of securities issued in business combination transactions

Income Taxes Income Tax (Tables)

v2.4.0.8
Income Taxes Income Tax (Tables)
 12 Months Ended
Dec. 31, 2013
Income Tax Disclosure [Abstract]  
Schedule of components of income tax expense (benefit)
Income tax expense (benefit) consisted of the following:
 
Years ended December 31,
 
(in millions)
2013

2012

2011

Current:



U.S. federal
$
361

369

313

State and local
22

23

28

Foreign jurisdiction
78

136

117

Total
461

528

458

Deferred:



U.S. federal
(107
)
(121
)
(97
)
State and local
(7
)
(7
)
(15
)
Foreign jurisdiction
6

(6
)
(4
)
Total
(108
)
(134
)
(116
)
Total income tax expense
$
353

394

342

Schedule of pre-tax income, domestic and foreign
Pre-tax income was as follows:
 
Years ended December 31,
 
(in millions)
2013

2012

2011

QVC-U.S.
$
824

865

785

QVC-Japan
181

253

199

QVC-Germany
18

29

32

QVC-U.K.
1

(17
)
(2
)
QVC-Italy
(38
)
(49
)
(60
)
Consolidated QVC
$
986

1,081

954

Schedule of effective income tax rate reconciliation
Total income tax 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

Provision at statutory rate
35.0
 %
35.0
 %
35.0
 %
State income taxes, net of federal benefit
0.7
 %
1.0
 %
0.9
 %
Foreign taxes
0.6
 %
1.3
 %
1.3
 %
Foreign earnings repatriation
(0.4
)%
(1.1
)%
(1.1
)%
Permanent differences
—
 %
0.1
 %
—
 %
Other, net
(0.1
)%
0.1
 %
(0.3
)%
Total income tax expense
35.8
 %
36.4
 %
35.8
 %
Schedule of deferred tax assets and liabilities
The tax effects of temporary differences that gave rise to significant portions of the deferred income tax assets and deferred income tax liabilities are presented below:
 
December 31,
 
(in millions)
2013

2012

Deferred tax assets:


Accounts receivable, principally due to the allowance for doubtful accounts and related reserves for the uncollectible accounts
$
32

29

Inventories, principally due to obsolescence reserves and additional costs of inventories for tax purposes pursuant to the Tax Reform Act of 1986
36

39

Allowance for sales returns
39

33

Deferred compensation
36

27

Unrecognized federal and state tax benefits
29

31

Accrued liabilities
25

29

Other
36

42

Subtotal
233

230

Valuation allowance
(1
)
(1
)
Total deferred tax assets
232

229

Deferred tax liabilities:


Depreciation and amortization
(1,349
)
(1,455
)
Cumulative translation of foreign currencies
(47
)
(33
)
Total deferred tax liabilities
(1,396
)
(1,488
)
Net deferred tax liability
$
(1,164
)
(1,259
)
Schedule of unrecognized tax benefits roll forward
A reconciliation of the 2013 beginning and ending amount of the liability for unrecognized tax benefits is as follows:
(in millions)

Balance at January 1, 2013
95

Decreases related to prior year tax positions
(11
)
Increases related to current year tax positions
12

Settlements
(7
)
Balance at December 31, 2013
89