猫咪社区

(11)听听Income Taxes

Income tax benefit (expense) consists of:

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The following table presents a summary of our domestic and foreign earnings (loss) before income taxes:

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Expected income tax benefit (expense) differs from the amounts computed by applying the U.S. federal income tax rate of 21% for the years ended December 31, 2020, 2019 and 2018 as a result of the following:

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For the year ended December 31, 2020, the significant reconciling items, as noted in the table above, are additional tax expense related to an impairment loss on goodwill that is not deductible for tax purposes and an increase in the Company鈥檚 valuation allowance, partially offset by tax benefits related to changes in the Company鈥檚 effective tax rate and federal tax credits.

For the year ended December 31, 2019, the significant reconciling items, as noted in the table above, are additional tax expense related to increases in the Company鈥檚 valuation allowance, changes in the Company鈥檚 effective state tax rate and the effect of state income taxes, partially offset by tax benefits related to deductible stock based compensation, earnings in foreign jurisdictions taxed at rates lower than the 21% U.S. federal tax rate and federal income tax credits. 听

For the year ended December 31, 2018, the significant reconciling items, as noted in the table above, are deductible stock-based compensation, benefits related to federal tax credits and the resolution of historical matters with various tax authorities, partially offset by changes in the valuation allowance and taxable dividends not recognized for book purposes.

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

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Sirius XM Holdings鈥� deferred tax assets and liabilities are included in the amounts above although Sirius XM Holdings鈥� deferred tax assets and liabilities are not offset with 猫咪社区鈥檚 deferred tax assets and liabilities as Sirius XM Holdings is not included in the consolidated group tax return of 猫咪社区. 猫咪社区鈥檚 acquisition of a controlling interest in Sirius XM Holdings鈥� outstanding common stock during January 2013 did not cause a change in control under Section 382 of the Code.

During the year ended December听31, 2020, there was a $69 million increase in the Company鈥檚 valuation allowance that affected tax expense and an $8 million increase that affected equity.

At December听31, 2020, the Company had a deferred tax asset of $1,436 million for federal, state and foreign net operating losses (鈥淣OLs鈥�), interest expense carryforwards and tax credit carryforwards. Of this amount, $745 million is recorded at the Sirius XM Holdings level. If not utilized to reduce income tax liabilities at Sirius XM Holdings in future periods, these loss carryforwards and tax credits will expire on various dates through 2040. The Company has $61 million of federal NOLs, $97 million of federal interest expense carryforwards, $300 million of foreign NOLs and $214 million of foreign interest expense carryforwards that may be carried forward indefinitely. The remaining $19 million of carryforwards expire at certain future dates. These carryforwards are expected to be utilized in future periods, except for $293 million of NOLs, interest expense carryforwards and tax credit carryforwards which, based on current projections, will not be utilized in the future and are subject to a valuation allowance.

A reconciliation of unrecognized tax benefits is as follows:

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