TripAdvisor 2015 Annual Report Download - page 46
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Interest Income and Other, Net
Interestincomeandother,netprimarilyconsistsofinterestearnedandamortizationofdiscountsandpremiumsonourmarketablesecurities,netforeign
exchangegainsandlosses,andgainsandlossesonsalesofourmarketablesecuritiesandsaleofbusinesses.
Year ended December 31,
2015 2014 2013
(in millions)
Interestincomeandother,net $ 17 $ (9) $ -
2015 vs. 2014
Interestincomeandother,netincreasedduringtheyearendedDecember31,2015,respectively,whencomparedtothesameperiodsin2014,primarilydue
tothefluctuationofforeignexchangeratesanda$20milliongainfromthesaleofoneofourChinesesubsidiariesduring2015.Referto“Note3—Acquisitions
and Dispositions ”inthenotestoourconsolidatedfinancialstatementsinItem8foradditionalinformationonthesaleofthisbusiness.
2014 vs. 2013
Interestincomeandother,netdecreased$9millionduringtheyearendedDecember31,2014,respectively,whencomparedtothesameperiodsin2013,
primarilyduetothefluctuationofforeignexchangerates.
Provision for Income Taxes
Year ended December 31,
2015 2014 2013
(in millions)
Provisionforincometaxes $ 41 $ 96 $ 79
Effectivetaxrate 17.2% 29.8% 27.8%
2015 vs. 2014
Oureffectivetaxratedecreasedto17.2%duringtheyearendedDecember31,2015from29.8%inthesameperiodin2014.Thechangeintheeffectivetax
ratefor2015comparedtothe2014ratewasprimarilyduetoachangeinjurisdictionalearnings,whichincludesanincremental$59millionofexpenserelatedto
charitablecontributionsintheU.S.during2015,andtherecognitionofataxbenefitof$13millioninresponsetoarecentU.S.TaxCourtrulinginregardsto
AlteraCorporationonthetreatmentofstock-basedcompensationincost-sharingarrangements.Referto“Note9—Income Taxes ”inthenotestoourconsolidated
financialstatementsinItem8foradiscussionregardingtheAlteraCorporationcourtruling.
OureffectivetaxrateisgenerallylessthanthefederalstatutoryrateprimarilyduetoearningsinjurisdictionsoutsidetheUnitedStates,whereoureffective
taxrateislower.ThisispartlydrivenbyadecreaseinthestatutorytaxrateintheUnitedKingdomfrom21%to20%in2015,andourtaxincentiveonqualifying
incomeinSingaporegrantedbytheSingaporeEconomicDevelopmentBoardin2011.Thisincentiveprovidesforareducedtaxrateonqualifyingincomeof5%as
comparedtoSingapore’sstatutorytaxrateof17%andisconditionaluponourmeetingcertainemploymentandinvestmentthresholds.Oureffectivetaxrateis
partiallyoffsetbystateincometaxes,non-deductiblestockcompensationandaccrualsonuncertaintaxpositions.
2014 vs. 2013
Oureffectivetaxrateincreased2%duringtheyearendedDecember31,2014overthesameperiodin2013.Thechangeintheeffectivetaxratefor2014
comparedtothe2013ratewasprimarilyduetoachangeinjurisdictionalearningsandcertaindiscreteitems.
OureffectivetaxrateisgenerallylessthanthefederalstatutoryrateprimarilyduetoearningsinjurisdictionsoutsidetheUnitedStates,whereoureffective
taxrateislower.ThisispartlydrivenbyadecreaseinthestatutorytaxrateintheUnitedKingdomfrom23%to21%in2014,andourtaxincentiveonqualifying
incomeinSingaporegrantedbytheSingaporeEconomicDevelopmentBoardin
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