Zynga 2014 Annual Report Download - page 98

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Table of Contents
Income tax expense (benefit) consists of the following for the periods shown below (in thousands):
The reconciliation of federal statutory income tax provision (benefit) to our effective income tax provision is as follows (in thousands):
We have not provided U.S. income taxes and foreign withholding taxes on the undistributed earnings of our profitable foreign subsidiaries
as of December 31, 2014 because we intend to permanently reinvest such earnings outside the United States. If these foreign earnings were to be
repatriated in the future, the related U.S. tax liability may be reduced by any foreign income taxes previously paid on these earnings. As of
December 31, 2014, the cumulative amount of earnings upon which U.S. income taxes have not been provided is approximately $17.6 million.
95
Year Ended December 31,
2014
2013
2012
Current:
Federal
$
(132
)
$
(15,712
)
$
84,421
State
(16
)
(134
)
5,431
Foreign
2,777
3,206
3,862
Total current tax expense
2,629
(12,640
)
93,714
Deferred:
Federal
(6,888
)
(14,357
)
(40,331
)
State
(353
)
(86
)
(2,821
)
Foreign
(2,715
)
(804
)
(689
)
Total deferred tax expense (benefit)
(9,956
)
(15,247
)
(43,841
)
Provision for (benefit from) income taxes
$
(7,327
)
$
(27,887
)
$
49,873
Year Ended December 31,
2014
2013
2012
Expected benefit at U.S. federal statutory rate
$
(81,630
)
$
(22,704
)
$
(55,837
)
State income taxes
—
net of federal benefit
(2,681
)
(1,503
)
(1,851
)
Income taxed at foreign rates
33,417
4,024
48,975
Equity
-
based compensation
2,865
6,741
29,998
Tax credits
—
(
12,389
)
—
Tax reserve for uncertain tax positions
19
2,224
45,961
Change in valuation allowance
37,202
14,705
(12,807
)
Change in earnings mix
—
(
16,306
)
—
Impact of change in tax rates
25
(1,530
)
(566
)
Acquisition costs
2,981
(1,480
)
(4,960
)
Other
475
331
960
$
(7,327
)
$
(27,887
)
$
49,873