Liberty Broadband Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense consists of the following (amounts in thousands):



	Years Ended December 31,
	2013		2012	2011
Deferred tax expense:
Federal taxes	$	9,267	10,318	6,264
State taxes	1,690		1,770	1,141
	$	10,957	12,088	7,405

Schedule of Effective Income Tax Rate Reconciliation

Total income tax expense differed from the “expected” income tax expense determined by applying the statutory federal income tax rate of 35% as follows (amounts in thousands):



	Years Ended December 31,
	2013			2012	2011
“Expected” statutory tax expense	$	14,939		7,437	4,500
Impact of non-controlling interest attributable to non-tax paying entity	(7,977		)	—	—
State income taxes, net of federal expense	1,690			1,770	1,141
Income tax effect of nondeductible entertainment expenses	1,045			777	737
Income tax effect of nondeductible lobbying expenses	369			298	327
Income tax effect of nondeductible officer compensation	824			1,718	758
Other, net	67			88	(58	)
	$	10,957		12,088	7,405

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities at December 31, 2013 and 2012 are summarized below (amounts in thousands):



	2013		2012
Current deferred tax assets, net of current deferred tax liability:
Net operating loss carryforwards	$	30,344	3,952
Compensated absences, accrued for financial reporting purposes	2,956		2,605
Workers compensation and self-insurance health reserves, principally due to accrual for financial reporting purposes	1,688		1,357
Accounts receivable, principally due to allowance for doubtful receivables	1,154		1,319
Deferred compensation expense for tax purposes in excess of amounts recognized for financial reporting purposes	104		32
Deferred revenue for financial reporting purposes	2,673		2,734
Other	834		898
Total current deferred tax assets	$	39,753	12,897
Long-term deferred tax assets:
Net operating loss carryforwards	$	90,589	116,034
Deferred revenue for financial reporting purposes	35,506		36,316
Alternative minimum tax credits	1,895		1,895
Deferred compensation expense for tax purposes in excess of amounts recognized for financial reporting purposes	2,556		2,543
Asset retirement obligations in excess of amounts recognized for tax purposes	4,930		6,680
Share-based compensation expense for financial reporting purposes in excess of amounts recognized for tax purposes	1,860		1,675
Other	4,335		3,353
Total long-term deferred tax assets	141,671		168,496
Long-term deferred tax liabilities:
Plant and equipment, principally due to differences in depreciation	212,719		233,530
Intangible assets	49,761		58,627
Flow-through entity deferred tax items	40,667		—
Total long-term deferred tax liabilities	303,147		292,157
Net long-term deferred tax liabilities	$	161,476	123,661

Summary of Operating Loss Carryforwards

Our tax net operating loss carryforwards are summarized below by year of expiration (amounts in thousands):



Years ending December 31,	Federal		State
2020	$	39,969	38,954
2021	29,614		28,987
2022	14,081		13,788
2023	3,968		3,903
2024	722		—
2025	737		—
2026	150		—
2027	1,010		—
2028	39,879		39,715
2029	48,370		47,558
2031	110,933		109,376
2033	5,031		4,927
Total tax net operating loss carryforwards	$	294,464	287,208