|
Taxes (Tables)
|
12 Months Ended |
|
Dec. 31, 2013
|
| Components of Income before (Provision) Benefit for Income Taxes |
The components
of income before (provision) benefit for income taxes are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(dollars in
millions) |
|
|
Years Ended
December 31, |
|
2013 |
|
|
2012 |
|
|
2011 |
|
|
Domestic
|
|
$ |
28,833 |
|
|
$ |
9,316 |
|
|
$ |
9,724 |
|
|
Foreign
|
|
|
444 |
|
|
|
581 |
|
|
|
759 |
|
|
|
|
|
|
|
Total
|
|
$ |
29,277 |
|
|
$ |
9,897 |
|
|
$ |
10,483 |
|
|
|
|
|
|
|
| Components of Provision (Benefit) for Income Taxes |
The components
of the provision (benefit) for income taxes are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(dollars in
millions) |
|
|
Years Ended
December 31, |
|
2013 |
|
|
2012 |
|
|
2011 |
|
|
Current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
$ |
(197 |
) |
|
$ |
223 |
|
|
$ |
193 |
|
|
Foreign
|
|
|
(59 |
) |
|
|
(45 |
) |
|
|
25 |
|
|
State and Local
|
|
|
201 |
|
|
|
114 |
|
|
|
290 |
|
|
|
|
|
|
|
Total
|
|
|
(55 |
) |
|
|
292 |
|
|
|
508 |
|
|
|
|
|
|
|
Deferred
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
|
5,060 |
|
|
|
(559 |
) |
|
|
270 |
|
|
Foreign
|
|
|
8 |
|
|
|
10 |
|
|
|
(38 |
) |
|
State and Local
|
|
|
717 |
|
|
|
(403 |
) |
|
|
(455 |
) |
|
|
|
|
|
|
Total
|
|
|
5,785 |
|
|
|
(952 |
) |
|
|
(223 |
) |
|
|
|
|
|
|
Total income tax provision
(benefit)
|
|
$ |
5,730 |
|
|
$ |
(660 |
) |
|
$ |
285 |
|
|
|
|
|
|
|
| Schedule for Principal Reasons for Difference in Effective and Statutory Tax Rates |
The following
table shows the principal reasons for the difference between the
effective income tax rate and the statutory federal income tax
rate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
December 31, |
|
2013 |
|
|
2012 |
|
|
2011 |
|
|
Statutory federal income
tax rate
|
|
|
35.0 |
% |
|
|
35.0 |
% |
|
|
35.0 |
% |
|
State and local income tax
rate, net of federal tax benefits
|
|
|
2.1 |
|
|
|
(1.9 |
) |
|
|
(1.0 |
) |
|
Affordable housing
credit
|
|
|
(0.6 |
) |
|
|
(1.9 |
) |
|
|
(1.8 |
) |
|
Employee benefits including
ESOP dividend
|
|
|
(0.4 |
) |
|
|
(1.1 |
) |
|
|
(1.4 |
) |
|
Equity in earnings from
unconsolidated businesses
|
|
|
(0.3 |
) |
|
|
(1.4 |
) |
|
|
(1.9 |
) |
|
Noncontrolling
interests
|
|
|
(14.3 |
) |
|
|
(33.7 |
) |
|
|
(23.0 |
) |
|
Other, net
|
|
|
(1.9 |
) |
|
|
(1.7 |
) |
|
|
(3.2 |
) |
|
|
|
|
|
|
Effective income tax
rate
|
|
|
19.6 |
% |
|
|
(6.7 |
)% |
|
|
2.7 |
% |
|
|
|
|
|
|
| Schedule of Cash Taxes Paid |
The amounts of
cash taxes paid are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(dollars in
millions) |
|
|
Years Ended
December 31, |
|
2013 |
|
|
2012 |
|
|
2011 |
|
|
Income taxes, net of
amounts refunded
|
|
$ |
422 |
|
|
$ |
351 |
|
|
$ |
762 |
|
|
Employment taxes
|
|
|
1,282 |
|
|
|
1,308 |
|
|
|
1,328 |
|
|
Property and other
taxes
|
|
|
2,082 |
|
|
|
1,727 |
|
|
|
1,883 |
|
|
|
|
|
|
|
Total
|
|
$ |
3,786 |
|
|
$ |
3,386 |
|
|
$ |
3,973 |
|
|
|
|
|
|
|
| Schedule of Deferred Taxes |
Significant
components of deferred tax assets and liabilities are as
follows:
|
|
|
|
|
|
|
|
|
| |
|
(dollars in
millions) |
|
|
At
December 31, |
|
2013 |
|
|
2012 |
|
|
Employee
benefits
|
|
$ |
10,242 |
|
|
$ |
13,644 |
|
|
Tax loss and credit carry
forwards
|
|
|
2,747 |
|
|
|
4,819 |
|
|
Uncollectible accounts
receivable
|
|
|
213 |
|
|
|
206 |
|
|
Other - assets
|
|
|
959 |
|
|
|
1,050 |
|
|
|
|
|
|
|
|
|
14,161 |
|
|
|
19,719 |
|
|
Valuation
allowances
|
|
|
(1,596 |
) |
|
|
(2,041 |
) |
|
|
|
|
|
|
Deferred tax
assets
|
|
|
12,565 |
|
|
|
17,678 |
|
|
|
|
|
|
|
|
|
|
Former MCI intercompany
accounts receivable basis difference
|
|
|
1,121 |
|
|
|
1,275 |
|
|
Depreciation
|
|
|
14,030 |
|
|
|
13,953 |
|
|
Leasing activity
|
|
|
997 |
|
|
|
1,208 |
|
|
Wireless joint venture
including wireless licenses
|
|
|
23,032 |
|
|
|
22,171 |
|
|
Other -
liabilities
|
|
|
1,470 |
|
|
|
1,320 |
|
|
|
|
|
|
|
Deferred tax
liabilities
|
|
|
40,650 |
|
|
|
39,927 |
|
|
|
|
|
|
|
Net deferred tax
liability
|
|
$ |
28,085 |
|
|
$ |
22,249 |
|
|
|
|
|
|
|
| Reconciliation of Beginning and Ending Balance of Unrecognized Tax Benefits |
A reconciliation of the
beginning and ending balance of unrecognized tax benefits is as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
(dollars in millions) |
|
|
|
|
2013 |
|
|
2012 |
|
|
2011 |
|
|
Balance at
January 1,
|
|
$ |
2,943 |
|
|
$ |
3,078 |
|
|
$ |
3,242 |
|
|
Additions based on tax
positions related to the current year
|
|
|
116 |
|
|
|
131 |
|
|
|
111 |
|
|
Additions for tax positions
of prior years
|
|
|
250 |
|
|
|
92 |
|
|
|
456 |
|
|
Reductions for tax
positions of prior years
|
|
|
(801 |
) |
|
|
(415 |
) |
|
|
(644 |
) |
|
Settlements
|
|
|
(210 |
) |
|
|
100 |
|
|
|
(56 |
) |
|
Lapses of statutes of
limitations
|
|
|
(168 |
) |
|
|
(43 |
) |
|
|
(31 |
) |
|
|
|
|
|
|
Balance at
December 31,
|
|
$ |
2,130 |
|
|
$ |
2,943 |
|
|
$ |
3,078 |
|
|
|
|
|
|
|
| Schedule of After Tax Benefits Related to Interest and Penalties in Provision for Income Taxes |
We recognized the following
net after-tax benefits related to interest and penalties in the
provision for income taxes:
|
|
|
|
|
|
Years Ended
December 31, |
|
(dollars in millions) |
|
|
2013
|
|
$ |
33 |
|
|
2012
|
|
|
82 |
|
|
2011
|
|
|
60 |
|
|
| Schedule of After Tax Accrual for Payment of Interest and Penalties in Consolidated Balance Sheet |
The after-tax accruals for
the payment of interest and penalties in the consolidated balance
sheets are as follows:
|
|
|
|
|
|
At
December 31, |
|
(dollars in millions) |
|
|
2013
|
|
$ |
274 |
|
|
2012
|
|
|
386 |
|
|