Liberty TripAdvisor Holdings, 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


	Years ended
	December 31,
	2014		2013	2012
	(amounts in millions)
Current:
Federal	$	(77)	(32)	(41)
State and local		(22)	(10)	(7)
Foreign		(6)	(20)	(1)
	$	(105)	(62)	(49)
Deferred:
Federal	$	55	9	(68)
State and local		(16)	76	(8)
Foreign		31	32	1
		70	117	(75)
Income tax benefit (expense)	$	(35)	55	(124)

Schedule of income before income taxes


	Years ended
	December 31,
	2014		2013	2012
	(amounts in millions)
Domestic	$	4	(23)	1,104
Foreign		40	(5)	—
Total	$	44	(28)	1,104

Schedule of income tax expense reconciliation to the effective tax rate


	Years ended
	December 31,
	2014		2013	2012
	(amounts in millions)
Computed expected tax benefits (expense)	$	(16)	10	(386)
State and local taxes, net of federal income taxes		(7)	(3)	(9)
Foreign taxes, net of foreign tax credits		28	15	(1)
Change in estimated tax rate		(15)	46	—
Goodwill impairment		—	—	(13)
Consolidation of TripAdvisor		—	—	294
Basis difference in consolidated subsidiary		(5)	—	(8)
Change in valuation allowance		(7)	(3)	—
Change in unrecognized tax benefits		(14)	(9)	—
Other		1	(1)	(1)
Income tax (expense) benefit	$	(35)	55	(124)

Schedule of deferred tax assets and liabilities


	December 31,
	2014		2013
	(amounts in millions)
Deferred tax assets:
Net operating loss carryforwards	$	48	27
Stock-based compensation		45	28
Other		61	10
Total deferred tax assets		154	65
Less: valuation allowance		(23)	(15)
Net deferred tax assets		131	50
Deferred tax liabilities:
Intangible assets		(870)	(869)
Investments		(12)	(8)
Other		(57)	(19)
Total deferred tax liabilities		(939)	(896)
Net deferred tax liability	$	(808)	(846)

Schedule of deferred taxes as reported in the balance sheet


	December 31,
	2014		2013
	(amounts in millions)
Current deferred tax asset	$	11	6
Noncurrent deferred tax asset		2	1
Noncurrent deferred tax liability		(821)	(853)
	$	(808)	(846)

Schedule of gross unrecognized tax benefit

A reconciliation of unrecognized tax benefits is as follows (amounts in millions):


	Years ended
	December 31,
	2014		2013
Balance at beginning of year	$	36	24
Additions based on tax positions related to the current year		13	12
Additions for tax positions of prior years		18	4
Reductions for tax positions of prior years		—	(4)
Balance at end of year	$	67	36

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

+ References + Details