QVC Group, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

3 Months Ended

Mar. 31, 2013

Schedule of Components of Income Tax Expense (Benefit)

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



	Three Months Ended March 31,
	2013			2012
Current:
Federal	$	17,435		$	27,583
State and local	(650		)	2,378
Foreign	291			670
	17,076			30,631
Deferred:
Federal	14,311			12,356
State and local	3,557			(2,795		)
	17,868			9,561
Income tax expense	$	34,944		$	40,192

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense differs from the amounts computed by applying the U.S. federal income tax rate of 35% as a result of the following (in thousands):



	Three Months Ended March 31,
	2013			2012
Computed expected tax expense	$	32,601		$	41,785
State and local income taxes, net of federal income taxes	1,813			2,439
Foreign taxes, net of foreign tax credit	503			141
Change in valuation allowance affecting tax expense	(693		)	(4,212		)
Change in subsidiary tax status	791			—
Other, net	(71		)	39
Income tax expense	$	34,944		$	40,192

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities at March 31, 2013 and December 31, 2012 are presented below (in thousands):



	March 31, 2013			December 31, 2012
Deferred tax assets:
Tax loss and credit carryforwards	$	10,777		$	155,861
Accrued stock compensation	6,376			5,575
Investments	26,439			25,516
Investment in films and television programs	—			1,163
Other future deductible amounts	3,613			219
Deferred tax assets	47,205			188,334
Valuation allowance	(935		)	(155,861		)
Deferred tax assets, net	46,270			32,473

Deferred tax liabilities:
Property and equipment	(18,200		)	(18,807		)
Investment in films and television programs	(20,095		)	—
Other future taxable amounts	—			(454		)
Deferred tax liabilities	(38,295		)	(19,261		)

Net deferred tax assets	$	7,975		$	13,212