Zynga 2015 Annual Report Download - page 98
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Table of Contents
7. Income Taxes
Income (loss) before income tax expense consists of the following for the periods shown below (in thousands):
Year Ended December 31,
2015 2014 2013
United States $ (83,432) $(132,281) $ (56,215)
International (46,750) (100,947) (8,654)
Total $(130,182) $(233,228) $ (64,869)
Income tax expense (benefit) consists of the following for the periods shown below (in thousands):
Year Ended December 31,
2015 2014 2013
Current:
Federal $ (30) $ (132) $(15,712)
State (2,863) (16) (134)
Foreign 3,817 2,777 3,206
Total current tax expense 924 2,629 (12,640)
Deferred:
Federal (8,818) (6,888) (14,357)
State (504) (353) (86)
Foreign (274) (2,715) (804)
Total deferred tax expense (benefit) (9,596) (9,956) (15,247)
Provision for (benefit from) income taxes $(8,672) $(7,327) $(27,887)
The reconciliation of federal statutory income tax provision (benefit) to our effective income tax provision is as follows (in thousands):
Year Ended December 31,
2015 2014 2013
Expected benefit at U.S. federal statutory rate $ (45,564) $ (81,630) $ (22,704)
State income taxes—net of federal benefit (2,863) (2,681) (1,503)
Income taxed at foreign rates 18,406 33,417 4,024
Equity-based compensation 1,125 2,865 6,741
Tax credits — — (12,389)
Tax reserve for uncertain tax positions 1,827 19 2,224
Change in valuation allowance 17,526 37,202 14,705
Change in earnings mix — — (16,306)
Impact of change in tax rates (18) 25 (1,530)
Acquisition costs 650 2,981 (1,480)
Other 239 475 331
$ (8,672) $ (7,327) $(27,887)
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, 2015 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
95