v2.4.0.6
Income Taxes (Tables)
|
12 Months Ended |
|
Schedule of Components of Income Tax Expense (Benefit) |
The provision for income
taxes consists of the following (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, |
|
|
|
2010 |
|
|
2011 |
|
|
2012 |
|
Current:
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
$ |
1,657 |
|
|
$ |
1,724 |
|
|
$ |
2,342 |
|
State
|
|
|
458 |
|
|
|
274 |
|
|
|
171 |
|
Foreign
|
|
|
167 |
|
|
|
248 |
|
|
|
358 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
2,282 |
|
|
|
2,246 |
|
|
|
2,871 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred:
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
|
(25 |
) |
|
|
452 |
|
|
|
(328 |
) |
State
|
|
|
47 |
|
|
|
(109 |
) |
|
|
(19 |
) |
Foreign
|
|
|
(13 |
) |
|
|
(0 |
) |
|
|
74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
9 |
|
|
|
343 |
|
|
|
(273 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
$ |
2,291 |
|
|
$ |
2,589 |
|
|
$ |
2,598 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule of Effective Income Tax Rate Reconciliation |
The reconciliation of federal
statutory income tax rate to our effective income tax rate is as
follows (in millions):
C:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
December 31, |
|
|
|
2010 |
|
|
2011 |
|
|
2012 |
|
C: C:
Expected provision at federal
statutory tax rate (35%)
|
|
$ |
3,779 |
|
|
$ |
4,314 |
|
|
$ |
4,685 |
|
State taxes, net of federal
benefit
|
|
|
322 |
|
|
|
122 |
|
|
|
99 |
|
Stock-based compensation
expense
|
|
|
79 |
|
|
|
105 |
|
|
|
52 |
|
Change in valuation
allowance
|
|
|
(34 |
) |
|
|
27 |
|
|
|
1,921 |
|
Foreign rate differential
|
|
|
(1,769 |
) |
|
|
(2,001 |
) |
|
|
(2,200 |
) |
Federal research credit
|
|
|
(84 |
) |
|
|
(140 |
) |
|
|
0 |
|
Tax exempt interest
|
|
|
(12 |
) |
|
|
(10 |
) |
|
|
(7 |
) |
Non-deductible legal
settlement
|
|
|
0 |
|
|
|
175 |
|
|
|
0 |
|
Basis difference in
investment in Home business
|
|
|
0 |
|
|
|
0 |
|
|
|
(1,960 |
) |
Other permanent
differences
|
|
|
10 |
|
|
|
(3 |
) |
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
$ |
2,291 |
|
|
$ |
2,589 |
|
|
$ |
2,598 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
C:
|
Schedule of Deferred Tax Assets and Liabilities |
Significant components of
our deferred tax assets and liabilities are as follows (in
millions):
|
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
|
|
2011 |
|
|
2012 |
|
Deferred tax assets:
|
|
|
|
|
|
|
|
|
Stock-based compensation
expense
|
|
$ |
288 |
|
|
$ |
311 |
|
State taxes
|
|
|
138 |
|
|
|
184 |
|
Capital loss carryforward
|
|
|
285 |
|
|
|
236 |
|
Settlement with the Authors Guild and
AAP
|
|
|
35 |
|
|
|
28 |
|
Vacation accruals
|
|
|
52 |
|
|
|
67 |
|
Deferred rent
|
|
|
43 |
|
|
|
50 |
|
Accruals and reserves not currently
deductible
|
|
|
268 |
|
|
|
688 |
|
Acquired net operating
losses
|
|
|
156 |
|
|
|
505 |
|
Tax credit
|
|
|
55 |
|
|
|
274 |
|
Basis difference in
investment in Home business
|
|
|
0 |
|
|
|
2,043 |
|
Other
|
|
|
11 |
|
|
|
128 |
|
|
|
|
|
|
|
|
|
|
Total deferred tax assets
|
|
|
1,331 |
|
|
|
4,514 |
|
Valuation allowance
|
|
|
(333 |
) |
|
|
(2,629 |
) |
|
|
|
|
|
|
|
|
|
Total deferred tax assets net of
valuation allowance
|
|
|
998 |
|
|
|
1,885 |
|
Deferred tax liabilities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
(479 |
) |
|
|
(761 |
) |
Identified intangibles
|
|
|
(398 |
) |
|
|
(1,496 |
) |
Unrealized gains on investments and
other
|
|
|
(90 |
) |
|
|
(105 |
) |
Other prepaids
|
|
|
(70 |
) |
|
|
(118 |
) |
Other
|
|
|
(33 |
) |
|
|
(133 |
) |
|
|
|
|
|
|
|
|
|
Total deferred tax
liabilities
|
|
|
(1,070 |
) |
|
|
(2,613 |
) |
|
|
|
|
|
|
|
|
|
Net deferred tax
liabilities
|
|
$ |
(72 |
) |
|
$ |
(728 |
) |
|
|
|
|
|
|
|
|
|
|
Summary of Income Tax Contingencies |
The following table summarizes the
activity related to our gross unrecognized tax benefits from
January 1, 2010 to December 31, 2012 (in
millions):
|
|
|
|
|
Balance as of January 1,
2010
|
|
$ |
1,188 |
|
Increases related to prior year tax
positions
|
|
|
37 |
|
Decreases related to prior year tax
positions
|
|
|
(197 |
) |
Decreases related to settlement with
tax authorities
|
|
|
(47 |
) |
Decreases as a result of a lapse of
applicable statute of limitation
|
|
|
(97 |
) |
Increases related to current year tax
positions
|
|
|
256 |
|
|
|
|
|
|
Balance as of December 31,
2010
|
|
|
1,140 |
|
Increases related to prior year tax
positions
|
|
|
77 |
|
Decreases related to prior year tax
positions
|
|
|
(9 |
) |
Increases related to current year tax
positions
|
|
|
361 |
|
Decreases related to settlement with
tax authorities
|
|
|
(5 |
) |
|
|
|
|
|
Balance as of December 31,
2011
|
|
|
1,564 |
|
Increases related to prior year tax
positions
|
|
|
43 |
|
Decreases related to prior year tax
positions
|
|
|
(40 |
) |
Decreases related to settlement with
tax authorities
|
|
|
(62 |
) |
Increases related to
acquisition
|
|
|
17 |
|
Increases related to current year tax
positions
|
|
|
411 |
|
|
|
|
|
|
Balance as of December 31,
2012
|
|
|
1,933 |
|
|
|
|
|
|
|
X |
- Definition
Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.
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X |
- Definition
Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.
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X |
- Definition
Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.
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- 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.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319
Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 48
-Paragraph 21
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.
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