Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes

v3.25.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Taxes  
Income Taxes

(9) Income Taxes

Income tax benefit (expense) consists of:

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​

​

​

​

​

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Years ended December 31,

 

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2024

​

2023

​

2022

 

​

​

amounts in millions

 

Current:

    

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​

    

​

    

​

​

Federal

​

$

(38)

 

(30)

 

(222)

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State and local

​

 

(5)

 

(2)

 

(1)

​

​

​

 

(43)

 

(32)

 

(223)

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Deferred:

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​

​

​

​

​

​

​

Federal

​

 

(163)

 

(160)

 

(51)

​

State and local

​

 

(7)

 

(8)

 

(3)

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​

​

 

(170)

 

(168)

 

(54)

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Income tax benefit (expense)

​

$

(213)

 

(200)

 

(277)

​

​

​

Income tax benefit (expense) differs from the amounts computed by applying the applicable U.S. federal income tax rate of 21% as a result of the following:

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Years ended December 31,

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​

​

2024

​

2023

​

2022

 

​

​

amounts in millions

 

Computed expected tax benefit (expense)

    

$

(227)

    

(186)

    

(322)

​

State and local taxes, net of federal income taxes

​

 

(10)

 

(8)

 

(4)

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Nontaxable equity contribution

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1

 

4

 

41

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Change in valuation allowance

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—

 

—

 

1

​

Sale of consolidated subsidiary

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—

 

2

 

15

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Executive compensation

​

​

(3)

​

(5)

​

(7)

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Nontaxable merger proceeds

​

​

21

​

—

​

—

​

Federal tax credits

​

​

6

​

1

​

1

​

Other

​

 

(1)

 

(8)

 

(2)

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Income tax (expense) benefit

​

$

(213)

 

(200)

 

(277)

​

​

For the year ended December 31, 2024, the significant reconciling items, as noted in the table above, are primarily due to state income taxes and certain non-taxable proceeds received in connection with the Merger Agreement.

For the year ended December 31, 2023, the significant reconciling items, as noted in the table above, are primarily due to state income taxes and certain non-deductible expenses.

For the year ended December 31, 2022, the significant reconciling items, as noted in the table above, are primarily due to the nontaxable decrease in the fair value of the indemnification obligation owed to QVC Group and tax benefits from the sale of stock of a subsidiary.

The tax effects of temporary differences and tax attributes that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities are presented below:

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​

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December 31,

 

​

​

2024

​

2023

 

​

​

amounts in millions

 

Deferred tax assets:

    

​

    

    

    

​

Tax loss and tax credit carryforwards

​

$

61

 

36

​

Accrued stock-based compensation

​

 

9

 

15

​

Deferred revenue

​

 

18

 

27

​

Operating lease liabilities

​

​

30

​

28

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Other accrued liabilities

​

​

8

​

7

​

Other future deductible amounts

​

 

35

 

35

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Total deferred tax assets

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161

 

148

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Less: valuation allowance

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(1)

 

(1)

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Net deferred tax assets

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160

 

147

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Deferred tax liabilities:

​

​

​

​

​

​

Investments

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(2,089)

 

(1,871)

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Fixed assets

​

​

(182)

​

(196)

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Intangible assets

​

​

(246)

​

(262)

​

Debt

​

​

(1)

​

(5)

​

Operating lease ROU assets

​

 

(30)

 

(29)

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Total deferred tax liabilities

​

 

(2,548)

 

(2,363)

​

Net deferred tax asset (liability)

​

$

(2,388)

 

(2,216)

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​

The Company’s valuation allowance was unchanged in 2024.

At December 31, 2024, Liberty Broadband had deferred tax assets of $61 million for federal and state net operating losses, interest expense carryforwards and tax credit carryforwards. Of the $61 million, $57 million are carryforwards with no expiration. The remaining carryforwards expire at certain future dates. These carryforwards are expected to be utilized prior to expiration, except for $1 million which based on current projections, may expire unused and accordingly are subject to a valuation allowance. The carryforwards that are expected to be utilized begin to expire in 2028.

As of December 31, 2024, the Company had not recorded tax reserves related to unrecognized tax benefits for uncertain tax positions.

As of December 31, 2024, Liberty Broadband’s federal tax years prior to 2021 are closed. However, because Liberty Broadband generated a net operating loss (“NOL”) in 2014, 2016, 2017, 2018, 2019 and 2020, utilization of the NOLs in future years is still subject to adjustment. Liberty Broadband’s 2021 tax year is not under IRS examination. The IRS has completed its examination of Liberty Broadband’s 2022 tax year, but the 2022 tax year remains open until the statute of limitations expires on October 15, 2026. Liberty Broadband’s 2023 and 2024 tax years are being examined currently as part of the IRS’s compliance assurance process. Because Liberty Broadband’s ownership of Charter is less than the required 80%, Charter is not consolidated with Liberty Broadband for federal income tax purposes. As of December 31, 2024, all GCI and GCI Liberty tax years prior to 2021 are closed. However, because GCI generated NOLs in tax years prior to 2020, utilization of the NOLs in future years are subject to adjustment. Prior to the March 9, 2018 GCI Liberty split-off from QVC Group, certain GCI Liberty businesses were part of the QVC Group. consolidated federal tax group. QVC Group’s tax years prior to 2021 are closed for federal income tax purposes. Various states are currently examining QVC Group’s prior years’ state income tax returns.