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

Income Taxes

v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Taxes  
Income Taxes

(8) Income Taxes

Income tax (benefit) expense consists of:

​

​

​

​

​

​

​

​

​

​

​

​

Years ended December 31,

 

​

​

2025

​

2024

​

2023

 

​

​

amounts in millions

 

Current:

  ​ ​ ​

​

​

  ​ ​ ​

​

  ​ ​ ​

​

​

Federal

​

$

(72)

 

7

 

20

​

State and local

​

 

—

 

—

 

—

​

​

​

 

(72)

 

7

 

20

​

Deferred:

​

​

​

​

​

​

​

​

Federal

​

 

(837)

​

177

 

153

​

State and local

​

 

(14)

 

3

 

2

​

​

​

 

(851)

 

180

 

155

​

Total:

​

​

​

​

​

​

​

​

Federal

​

​

(909)

​

184

​

173

​

State and local

​

​

(14)

​

3

​

2

​

Income tax (benefit) expense

​

$

(923)

 

187

 

175

​

​

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Years ended December 31,

​

​

​

​

2025

​

​

2024

​

​

2023

​

 

​

​

​

(millions)

​

(percent)

​

​

(millions)

​

(percent)

​

​

(millions)

​

(percent)

​

 

U.S. Federal statutory tax rate

  ​ ​ ​

$

(683)

​

(21)

%

  ​ ​ ​

206

​

21

%

​

173

​

21

%

​

Domestic federal reconciling items

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Tax credits

​

​

(1)

​

0

%

​

(2)

​

0

%

​

—

​

0

%

​

Nontaxable and nondeductible items, net

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Nontaxable merger proceeds

​

​

(237)

​

(7)

%

​

(21)

​

(2)

%

​

—

​

0

%

​

Other

​

​

8

​

0

%

​

1

​

0

%

​

1

​

0

%

​

Domestic state and local income taxes, net of federal effect

​

​

(10)

​

0

%

​

3

​

0

%

​

1

​

0

%

​

Total income tax (benefit) expense

​

$

(923)

​

(28)

%

​

187

​

19

%

​

175

​

21

%

​

​

For the years ended December 31, 2025, 2024 and 2023, state and local income taxes in Colorado comprised the majority of the domestic state and local income taxes, net of federal effect category.

For the year ended December 31, 2025 and 2024, the significant reconciling items, as noted in the table above, are primarily due to non-taxable proceeds from Charter share repurchases received pursuant to the Merger Agreement.

For the year ended December 31, 2023, income tax expense did not differ from the U.S. federal income tax rate of 21%.

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:

​

​

​

​

​

​

​

​

​

​

December 31,

 

​

​

2025

​

2024

 

​

​

amounts in millions

 

Deferred tax assets:

  ​ ​ ​

​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

​

Tax loss and tax credit carryforwards

​

$

19

 

60

​

Accrued stock-based compensation

​

 

4

 

2

​

Intangible assets

​

​

3

​

6

​

Total deferred tax assets

​

 

26

 

68

​

Less: valuation allowance

​

 

—

 

—

​

Net deferred tax assets

​

 

26

 

68

​

Deferred tax liabilities:

​

​

​

​

​

​

Investments

​

 

(1,179)

 

(2,090)

​

Debt

​

​

(2)

​

(6)

​

Total deferred tax liabilities

​

 

(1,181)

 

(2,096)

​

Net deferred tax asset (liability)

​

$

(1,155)

 

(2,028)

​

​

The Company’s valuation allowance was unchanged in 2025.

At December 31, 2025, Liberty Broadband had deferred tax assets of $19 million for federal and state net operating losses, interest expense carryforwards and tax credit carryforwards. Of the $19 million, $17 million are carryforwards with no expiration. The remaining carryforwards expire at certain future dates. These carryforwards are expected to be utilized prior to expiration. The carryforwards that are expected to be utilized begin to expire in 2034.

As of December 31, 2025, the Company had not recorded tax reserves related to unrecognized tax benefits for uncertain tax positions.

As of December 31, 2025, Liberty Broadband’s federal tax years prior to 2021 are closed. However, because Liberty Broadband generated net operating losses (“NOLs”) in years prior to 2021, utilization of the NOLs in future years is still subject

to adjustment. The IRS has completed its examination of Liberty Broadband’s 2021, 2022 and 2023 tax years, but these years remain open until the statute of limitations expire on March 31, 2026, October 15, 2026 and October 15, 2027, respectively. Liberty Broadband’s 2024 and 2025 tax years are being examined currently as part of the IRS Compliance Assurance Process program. 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, 2025, all GCI and prior 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 is subject to adjustment. Prior to the March 9, 2018 prior GCI Liberty split-off from QVC Group, certain prior GCI Liberty businesses were part of the QVC Group consolidated federal tax group. QVC Group’s tax years prior to 2022 are closed for federal income tax purposes. Various states are currently examining QVC Group’s prior years’ state income tax returns.