|
Taxes (Tables)
|
12 Months Ended |
|
Dec. 31, 2014
|
| 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, |
|
2014 |
|
|
2013 |
|
|
2012 |
|
|
Domestic
|
|
$ |
12,992 |
|
|
$ |
28,833 |
|
|
$ |
9,316 |
|
|
Foreign
|
|
|
2,278 |
|
|
|
444 |
|
|
|
581 |
|
|
|
|
|
|
|
Total
|
|
$ |
15,270 |
|
|
$ |
29,277 |
|
|
$ |
9,897 |
|
|
|
|
|
|
|
| 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, |
|
2014 |
|
|
2013 |
|
|
2012 |
|
|
Current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
$ |
2,657 |
|
|
$ |
(197 |
) |
|
$ |
223 |
|
|
Foreign
|
|
|
81 |
|
|
|
(59 |
) |
|
|
(45 |
) |
|
State and Local
|
|
|
668 |
|
|
|
201 |
|
|
|
114 |
|
|
|
|
|
|
|
Total
|
|
|
3,406 |
|
|
|
(55 |
) |
|
|
292 |
|
|
|
|
|
|
|
Deferred
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
|
(51 |
) |
|
|
5,060 |
|
|
|
(559 |
) |
|
Foreign
|
|
|
(9 |
) |
|
|
8 |
|
|
|
10 |
|
|
State and Local
|
|
|
(32 |
) |
|
|
717 |
|
|
|
(403 |
) |
|
|
|
|
|
|
Total
|
|
|
(92 |
) |
|
|
5,785 |
|
|
|
(952 |
) |
|
|
|
|
|
|
Total income tax provision
(benefit)
|
|
$ |
3,314 |
|
|
$ |
5,730 |
|
|
$ |
(660 |
) |
|
|
|
|
|
|
| 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, |
|
2014 |
|
|
2013 |
|
|
2012 |
|
|
Statutory federal income
tax rate
|
|
|
35.0 |
% |
|
|
35.0 |
% |
|
|
35.0 |
% |
|
State and local income tax
rate, net of federal tax benefits
|
|
|
2.7 |
|
|
|
2.1 |
|
|
|
(1.9 |
) |
|
Affordable housing
credit
|
|
|
(1.0 |
) |
|
|
(0.6 |
) |
|
|
(1.9 |
) |
|
Employee benefits including
ESOP dividend
|
|
|
(0.7 |
) |
|
|
(0.4 |
) |
|
|
(1.1 |
) |
|
Disposition of Omnitel
Interest
|
|
|
(5.9 |
) |
|
|
– |
|
|
|
– |
|
|
Noncontrolling
interests
|
|
|
(5.0 |
) |
|
|
(14.3 |
) |
|
|
(33.7 |
) |
|
Other, net
|
|
|
(3.4 |
) |
|
|
(2.2 |
) |
|
|
(3.1 |
) |
|
|
|
|
|
|
Effective income tax
rate
|
|
|
21.7 |
% |
|
|
19.6 |
% |
|
|
(6.7 |
)% |
|
|
|
|
|
|
| Schedule of Cash Taxes Paid |
The amounts of
cash taxes paid are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(dollars in
millions) |
|
|
Years Ended
December 31, |
|
2014 |
|
|
2013 |
|
|
2012 |
|
|
Income taxes, net of
amounts refunded
|
|
$ |
4,093 |
|
|
$ |
422 |
|
|
$ |
351 |
|
|
Employment taxes
|
|
|
1,290 |
|
|
|
1,282 |
|
|
|
1,308 |
|
|
Property and other
taxes
|
|
|
1,797 |
|
|
|
2,082 |
|
|
|
1,727 |
|
|
|
|
|
|
|
Total
|
|
$ |
7,180 |
|
|
$ |
3,786 |
|
|
$ |
3,386 |
|
|
|
|
|
|
|
| Schedule of Deferred Taxes |
Significant
components of deferred tax assets and liabilities are as
follows:
|
|
|
|
|
|
|
|
|
| |
|
(dollars in
millions) |
|
|
At
December 31, |
|
2014 |
|
|
2013 |
|
|
Employee
benefits
|
|
$ |
13,350 |
|
|
$ |
10,413 |
|
|
Tax loss and credit carry
forwards
|
|
|
2,255 |
|
|
|
2,912 |
|
|
Other –
assets
|
|
|
2,247 |
|
|
|
1,783 |
|
|
|
|
|
|
|
|
|
17,852 |
|
|
|
15,108 |
|
|
Valuation
allowances
|
|
|
(1,841 |
) |
|
|
(1,685 |
) |
|
|
|
|
|
|
Deferred tax
assets
|
|
|
16,011 |
|
|
|
13,423 |
|
|
|
|
|
|
|
|
|
|
Spectrum and other
intangible amortization
|
|
|
28,283 |
|
|
|
18,280 |
|
|
Depreciation
|
|
|
23,423 |
|
|
|
18,913 |
|
|
Other –
liabilities
|
|
|
5,754 |
|
|
|
4,315 |
|
|
|
|
|
|
|
Deferred tax
liabilities
|
|
|
57,460 |
|
|
|
41,508 |
|
|
|
|
|
|
|
Net deferred tax
liability
|
|
$ |
41,449 |
|
|
$ |
28,085 |
|
|
|
|
|
|
|
| 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) |
|
|
|
|
2014 |
|
|
2013 |
|
|
2012 |
|
|
Balance at
January 1,
|
|
$ |
2,130 |
|
|
$ |
2,943 |
|
|
$ |
3,078 |
|
|
Additions based on tax
positions related to the current year
|
|
|
80 |
|
|
|
116 |
|
|
|
131 |
|
|
Additions for tax positions
of prior years
|
|
|
627 |
|
|
|
250 |
|
|
|
92 |
|
|
Reductions for tax
positions of prior years
|
|
|
(278 |
) |
|
|
(801 |
) |
|
|
(415 |
) |
|
Settlements
|
|
|
(239 |
) |
|
|
(210 |
) |
|
|
100 |
|
|
Lapses of statutes of
limitations
|
|
|
(497 |
) |
|
|
(168 |
) |
|
|
(43 |
) |
|
|
|
|
|
|
Balance at
December 31,
|
|
$ |
1,823 |
|
|
$ |
2,130 |
|
|
$ |
2,943 |
|
|
|
|
|
|
|
| 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) |
|
|
2014
|
|
$ |
92 |
|
|
2013
|
|
|
33 |
|
|
2012
|
|
|
82 |
|
|
| 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) |
|
|
2014
|
|
$ |
169 |
|
|
2013
|
|
|
274 |
|
|