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Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes
Note 5: Income Taxes
Income (Loss) Before Income Taxes
Year ended December 31 (in millions)202320222021
Domestic$22,164 $19,329 $21,243 
Foreign (1,686)(10,045)(2,150)
$20,478 $9,284 $19,093 
Components of Income Tax Expense
Year ended December 31 (in millions)202320222021
Current Expense (Benefit):
Federal$6,270 $4,025 $2,355 
State1,591 961 669 
Foreign249 207 343 
8,110 5,193 3,367 
Deferred Expense (Benefit):
Federal(2,126)(281)1,504 
State(468)(483)255 
Foreign(145)(70)133 
(2,739)(834)1,892 
Income tax expense (benefit)$5,371 $4,359 $5,259 
Our income tax expense (benefit) differs from the federal statutory amount because of the effect of the items detailed in the table below. 
Year ended December 31 (in millions)202320222021
Federal tax at statutory rate$4,300 $1,950 $4,009 
State income taxes, net of federal benefit418 454 464 
Foreign income taxed at different rates306 519 392 
Adjustments to uncertain and effectively settled tax positions, net353 179 238 
Federal research and development credits
(131)(104)(85)
Excess tax benefits recognized on share-based compensation4 (30)(209)
Tax legislation8 (287)498 
Goodwill impairment— 1,666 — 
Other113 12 (48)
Income tax expense (benefit)$5,371 $4,359 $5,259 
We base our provision for income taxes on our current period income, changes in our deferred income tax assets and liabilities, income tax rates, changes in estimates of our uncertain tax positions, tax planning opportunities available in the jurisdictions in which we operate and excess tax benefits or deficiencies that arise when the tax consequences of share-based compensation differ from amounts previously recognized in the statements of income. We recognize deferred tax assets and liabilities when there are temporary differences between the financial reporting basis and tax basis of our assets and liabilities and for the expected benefits of using net operating loss carryforwards. When a change in the tax rate or tax law has an impact on deferred taxes, we apply the change based on the years in which the temporary differences are expected to reverse. We record the change in our consolidated financial statements in the period of enactment.
The determination of the income tax consequences of a business combination includes identifying the tax basis of assets and liabilities acquired and any contingencies associated with uncertain tax positions assumed or resulting from the business combination. Deferred tax assets and liabilities related to temporary differences of an acquired entity are recorded as of the date of the business combination and are based on our estimate of the ultimate tax basis that will be accepted by the various tax authorities. We record liabilities for contingencies associated with prior tax returns filed by the acquired entity based on criteria set forth in the appropriate accounting guidance. We adjust the deferred tax accounts and the liabilities periodically to reflect any revised estimated tax basis and any estimated settlements with the various tax authorities. The effects of these adjustments are recorded to income tax expense.
From time to time, we engage in transactions in which the tax consequences may be subject to uncertainty. In these cases, we evaluate our tax position using the recognition threshold and the measurement attribute in accordance with the accounting guidance related to uncertain tax positions. Examples of these transactions include business acquisitions and dispositions, including consideration paid or received in connection with these transactions, certain financing transactions, and the allocation of income among state and local tax jurisdictions. Significant judgment is required in assessing and estimating the tax consequences of these transactions. We determine whether it is more likely than not that a tax position will be sustained on examination, including the resolution of any related appeals or litigation processes, based on the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to be recognized in our consolidated financial statements. We classify interest and penalties, if any, associated with our uncertain tax positions as a component of income tax expense (benefit).
Components of Net Deferred Tax Liability
December 31 (in millions)20232022
Deferred Tax Assets:
Net operating loss and other loss carryforwards$3,530 $3,325 
Advance on sale of investment (see Note 8)
2,367 — 
Nondeductible accruals and other4,100 3,210 
Less: Valuation allowance3,679 3,295 
 6,318 3,240 
Deferred Tax Liabilities:
Property and equipment and intangible assets29,337 29,688 
Investments1,002 265 
Long-term debt1,814 1,741 
Foreign subsidiaries and undistributed foreign earnings
59 55 
32,212 31,749 
Net deferred tax liability$25,894 $28,509 
The table below presents changes in our valuation allowance for deferred tax assets.
(in millions)202320222021
Beginning balance$3,295 $2,907 $2,312 
Additions charged to income tax expense and other accounts469 433 635 
Deductions from reserves84 45 40 
Ending balance$3,679 $3,295 $2,907 
Changes in our net deferred tax liability in 2023 that were not recorded as deferred income tax expense (benefit) are primarily related to an increase of $107 million associated with items included in other comprehensive income (loss).
As of December 31, 2023, we had federal net operating loss carryforwards of $182 million, and various state net operating loss carryforwards, the majority of which expire in periods through 2043. As of December 31, 2023, we also had foreign net operating loss carryforwards of $11.4 billion related to our foreign operations, primarily at Sky and NBCUniversal, the majority of which can be carried forward indefinitely. The determination of the realization of the state and foreign net operating loss carryforwards is dependent on our subsidiaries’ taxable income or loss, apportionment percentages, redetermination from taxing authorities, and state and foreign laws that can change from year to year and impact the amount of such carryforwards. We recognize a valuation allowance if we determine it is more likely than not that some portion, or all, of a deferred tax asset will not be realized. As of December 31, 2023 and 2022, our valuation allowance was primarily related to foreign and state net operating loss carryforwards.
Uncertain Tax Positions
Reconciliation of Unrecognized Tax Benefits
(in millions)
202320222021
Gross unrecognized tax benefits, January 1$2,161 $2,042 $1,879 
Additions based on tax positions related to the current year546 380 352 
Additions based on tax positions related to prior years1 56 111 
Reductions for tax positions of prior years(43)(145)(181)
Reductions due to expiration of statutes of limitations(56)(148)(107)
Settlements with tax authorities and other(15)(24)(12)
Gross unrecognized tax benefits, December 31$2,593 $2,161 $2,042 
Our gross unrecognized tax benefits include both amounts related to positions for which we have recorded liabilities for potential payment obligations and those for which tax has been assessed and paid. The amounts exclude the federal benefits on state tax positions that were recorded to deferred income taxes. If we were to recognize our gross unrecognized tax benefits in the future, $2.0 billion would impact our effective tax rate and the remaining amount would increase our deferred income tax liability. The amount and timing of the recognition of any such tax benefit is dependent on the completion of examinations of our tax filings by the various tax authorities and the expiration of statutes of limitations. It is reasonably possible that certain tax contests could be resolved within the next 12 months that may result in a decrease in our effective tax rate. Accrued interest and penalties associated with our liability for uncertain tax positions were not material in any period presented.
The IRS has completed its examination of our income tax returns for all years through 2021. Various states are examining our state tax returns and the tax years of those tax returns currently under examination vary by state, with most of the periods relating to tax years 2011 and forward. Various foreign jurisdictions are examining our tax returns and the tax years of those tax returns currently under examination vary by country, with most of the periods relating to tax years 2010 and forward.