Income Taxes (Tables)

Significant components of our deferred tax liabilities (assets) are as follows at December 31:


	2025		2024
Depreciation and amortization	$	37,570	$	36,531
Licenses and nonamortizable intangibles	21,742		20,660
Lease right-of-use assets	5,494		5,103
Lease liabilities	(5,464)		(5,107)
Employee benefits	(2,585)		(3,017)
Deferred fulfillment costs	1,657		1,788
Equity in partnership	14		2,716
Net operating loss and other carryforwards	(5,567)		(5,619)
Other – net	1,401		1,466
Subtotal	54,262		54,521
Deferred tax assets valuation allowance	3,978		4,338
Net deferred tax liabilities	$	58,240	$	58,859

Noncurrent deferred tax liabilities	$	58,312	$	58,939
Less: Noncurrent deferred tax assets	(72)		(80)
Net deferred tax liabilities	$	58,240	$	58,859

A reconciliation of the change in our UTB balance from January 1 to December 31 for 2025, 2024 and 2023 is as follows:


Federal, State and Foreign Tax	2025		2024		2023
Balance at beginning of year	$	12,533	$	11,924	$	9,657
Increases for tax positions related to the current year	521		369		1,026
Increases for tax positions related to prior years	294		1,017		448
Decreases for tax positions related to prior years	(124)		(772)		(212)
Lapse of statute of limitations	(13)		(8)		(16)
Settlements	96		3		1,021


Balance at end of year	13,307		12,533		11,924
Accrued interest and penalties	2,604		2,223		1,785
Gross unrecognized income tax benefits	15,911		14,756		13,709
Less: Deferred federal and state income tax benefits	(966)		(849)		(687)
Less: Tax attributable to timing items included above	(7,401)		(6,964)		(6,438)
Total UTB that, if recognized, would impact the effective income tax rate as of the end of the year	$	7,544	$	6,943	$	6,584

The components of income tax expense (benefit) are as follows:


	2025		2024		2023
Federal:
Current	$	970	$	2,769	$	2,280
Deferred	2,524		1,289		2,250
	3,494		4,058		4,530
State and local:
Current	(269)		859		423
Deferred	331		(512)		(832)
	62		347		(409)
Foreign:
Current	44		68		66
Deferred	21		(28)		38
	65		40		104
Total	$	3,621	$	4,445	$	4,225

The amounts of cash income taxes paid, net of amounts refunded, are as follows at December 31:


	2025		2024		2023
Federal	$	1,219	$	2,452	$	1,319
State	91		(49)		193
Foreign	43		53		87
Total	$	1,353	$	2,456	$	1,599

“Income Before Income Taxes” in the consolidated statements of income included the following components for the years ended December 31:


	2025		2024		2023
U.S. income before income taxes	$	26,993	$	16,674	$	20,506
Foreign income (loss) before income taxes	14		24		(658)
Total	$	27,007	$	16,698	$	19,848

A reconciliation of income tax expense (benefit) and the amount computed by applying the statutory federal income tax rate of 21% to income before income taxes is as follows:


	2025				2024				2023
	Amount		Percent		Amount		Percent		Amount		Percent
U.S. federal statutory tax rate	$	5,671	21.0	%	$	3,507	21.0	%	$	4,168	21.0	%
State and local income taxes – net of federal tax effect1,2	(155)		(0.6)		276		1.6		262		1.3
Foreign tax effects	40		0.2		22		0.1		98		0.5
Effect of change in tax laws or rates enacted current period	—		—		—		—		—		—
Effect of cross-border tax laws	—		—		(19)		(0.1)		(1)		—
Tax credits
Research and development credit	(139)		(0.5)		(183)		(1.1)		(180)		(0.9)
Other	(5)		—		(7)		—		(5)		—
Changes in valuation allowance	53		0.2		2		—		53		0.3
Nontaxable or nondeductible items:
Goodwill impairment	—		—		929		5.6		9		—
Noncontrolling interest	(301)		(1.1)		(274)		(1.6)		(259)		(1.3)
Divestiture of DIRECTV	(1,311)		(4.9)		—		—		—		—
Other	(124)		(0.5)		(43)		(0.3)		(157)		(0.8)
Changes in unrecognized tax benefits2	578		2.1		388		2.3		467		2.4
Other adjustments
Tax basis adjustments	(592)		(2.2)		—		—		—		—
Other	(94)		(0.3)		(153)		(0.9)		(230)		(1.2)
Effective income tax rate	$	3,621	13.4	%	$	4,445	26.6	%	$	4,225	21.3	%
1The states that contribute to the majority (greater than 50%) of the tax effect in this category include California for 2025; Florida, Illinois, Michigan, New York and Texas for 2024; and California and Illinois for 2023. State taxes are impacted by current year earnings, book-tax differences, apportionment methodologies, legislative changes, divestitures, return to accrual adjustments and other permanent book-tax differences.
2Effective January 1, 2025, we adopted ASU 2023-09, which requires the effective tax rate reconciliation to include a distinct category for changes in UTBs. This category must include the tax effects of changes in judgment related to prior-period tax positions, settlements and statute of limitations expirations, aggregated across all tax jurisdictions. Furthermore, in accordance with ASU 2023-09, we have elected to present tax positions taken in the current annual reporting period, aggregated across all tax jurisdictions, within “Changes in unrecognized tax benefits.”