TripAdvisor 2015 Annual Report Download - page 89
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ThesignificantcomponentsofourdeferredtaxassetsanddeferredtaxliabilitiesasofDecember31,2015and2014areasfollows:
December 31,
2015 2014
(in millions)
Deferred tax assets:
Stock-basedcompensation $ 40 $ 43
Netoperatinglosscarryforwards 31 34
Provisionforaccruedexpenses 12 13
Deferredrent 5 5
Leasefinancingobligation 33 26
Foreignadvertisingspend 8 9
Deferredexpenserelatedtocost-sharingarrangement 20 -
Charitablecontributioncarryforward 24 -
Other 4 5
Totaldeferredtaxassets $ 177 $ 135
Less:valuationallowance (17) (19)
Netdeferredtaxassets $ 160 $ 116
Deferred tax liabilities:
Intangibleassets $ (81) $ (88)
Propertyandequipment (27) (25)
Prepaidexpenses (4)(4)
Building (31) (26)
Deferredincomerelatedtocost-sharingarrangement (7) -
Other - (1)
Totaldeferredtaxliabilities $ (150) $ (144)
Netdeferredtaxasset(liability)(1) $ 10 $ (28)
(1)Includesnon-currentdeferredtaxassetsof$25millionand$1millionasofDecember31,2015and2014,respectively,reportedin"Other
long-termassets"onourconsolidatedbalancesheets.
AtDecember31,2015,wehadfederal,stateandforeignnetoperatinglosscarryforwards(“NOLs”)ofapproximately$16million,$13millionand$85
million.Ifnotutilized,thefederalandstateNOLswillexpireatvarioustimesbetween2020and2035andtheforeignNOLswillexpireatvarioustimesbetween
2016and2033.
AtDecember31,2015,wehadavaluationallowanceof$17millionprimarilyrelatedtoforeignnetoperatinglosscarryforwardsforwhichitismorelikely
thannotthatthetaxbenefitwillnotberealized.Thisamountrepresentedanoveralldecreaseof$2millionovertheamountrecordedasofDecember31,2014.The
decreaseisprimarilyrelatedtothesaleofoneofourChinesesubsidiariesthatpreviouslyhadafullvaluationallowance.Exceptforcertaindeferredtaxassets,we
expecttorealizeallofourdeferredtaxassetsbasedonastronghistoryofearningsintheUSandotherjurisdictions,aswellasfuturereversalsoftaxable
temporarydifferences.
WehavenotprovidedfordeferredU.S.incometaxesonundistributedearningsofourforeignsubsidiariesthatwehaveorintendtoreinvestpermanently
outsidetheUnitedStates;thetotalamountofsuchearningsasofDecember31,2015was$759million.ShouldwedistributeorbetreatedundercertainU.S.tax
rulesashavingdistributedearningsofforeignsubsidiariesintheformofdividendsorotherwise,wemaybesubjecttoU.S.incometaxes.Duetocomplexitiesin
taxlawsandvariousassumptionsthatwouldhavetobemade,itisnotpracticableatthistimetoestimatetheamountofunrecognizeddeferredU.S.taxesonthese
earnings.
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