QVC Group, Inc. 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, 2014

Schedule of Components of Income Tax Expense (Benefit)

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



	Years ended December 31,
	2014		2013		2012
Current:
Federal	$	110.6	$	119.2	$	141.5
State and local	7.6		9.3		4.6
Foreign	3.3		2.5		1.7
	121.5		131.0		147.8
Deferred:
Federal	14.9		0.5		(21.8		)
State and local	4.4		7.9		4.4
	19.3		8.4		(17.4		)
Income tax expense	$	140.8	$	139.4	$	130.4

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 millions):



	Years ended December 31,
	2014			2013			2012
Computed expected tax expense	$	143.4		$	136.2		$	133.9
State and local income taxes, net of federal income taxes	8.0			11.5			10.2
Foreign taxes, net of foreign tax credit	(0.7		)	0.9			0.8
Change in valuation allowance affecting tax expense	1.2			3.0			76.9
Deduction for qualified production activity	(10.4		)	(12.6		)	—
Taxable liquidation of subsidiary	—			—			(101.3		)
Change in subsidiary tax status	—			0.8			9.0
Other, net	(0.7		)	(0.4		)	0.9
Income tax expense	$	140.8		$	139.4		$	130.4

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2014 and 2013 are presented below (in millions):



	December 31,
	2014			2013
Deferred tax assets:
Tax loss and credit carryforwards	$	7.1		$	7.1
Accrued stock compensation	16.8			12.6
Investments	32.3			34.2
Other future deductible amounts	1.1			0.1
Deferred tax assets	57.3			54.0
Valuation allowance	(2.6		)	(1.5		)
Deferred tax assets, net	54.7			52.5

Deferred tax liabilities:
Property and equipment	(15.0		)	(16.0		)
Investment in films and television programs	(32.6		)	(9.3		)
Program rights	(7.3		)	(7.0		)
Other future taxable amounts	—			(1.2		)
Deferred tax liabilities	(54.9		)	(33.5		)

Net deferred tax assets (liabilities)	$	(0.2	)	$	19.0