Expedia 2015 Annual Report Download - page 68

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Other, Net
Other, net is comprised of the following:
Year ended December 31,
2015 2014 2013
($ in millions)
Foreign exchange rate gains (losses), net $ 25 $ 6 $ (1)
Noncontrolling investment basis adjustment 77 3 —
Other 11 9 (2)
Total other, net $113 $18 $ (3)
Provision for Income Taxes
Year ended December 31, % Change
2015 2014 2013 2015 vs 2014 2014 vs 2013
($ in millions)
Provision for income taxes $ 203 $ 92 $ 84 122% 9%
Effective tax rate 21.9% 19.7% 28.0%
The increase in the effective rate for 2015 compared to 2014 is primarily due to the gain on the sale of
eLong during 2015, and the release of liabilities related to uncertain tax positions in 2014. Our effective tax rate
for 2015 was lower than the 35% federal statutory rate due to earnings in foreign jurisdictions outside of the
United States, predominately Switzerland, where our statutory income tax rate is lower as well as the sale of
eLong, which had a U.S. effective rate of less than 35%.
The decrease in the effective rate for 2014 compared to 2013 is primarily due to the expiration of the statute
of limitations for the 2001 through 2005 federal tax years and the associated release of liabilities related to
uncertain tax positions as well as non-deductible stock-based compensation recorded related to the trivago
acquisition and non-deductible penalties included in the Hawaii pay-to-play assessments in 2013. Our effective
tax rate for 2014 was lower than the 35% federal statutory rate due to earnings in foreign jurisdictions outside of
the United States as well as the release of liabilities related to uncertain tax positions.
In 2013, our effective tax rate was lower than the 35% federal statutory rate primarily due to earnings in
jurisdictions outside the United States, partially offset by recording a valuation allowance related to deferred tax
assets of certain Australian and Chinese entities in 2013 as well as non-deductible charges in 2013 in connection
with the trivago acquisition and Hawaii pay-to-play assessments mentioned above.
Financial Position, Liquidity and Capital Resources
Our principal sources of liquidity are cash flows generated from operations; our cash and cash equivalents
and short-term investment balances, which were $1.7 billion and $1.8 billion at December 31, 2015 and 2014,
including $645 million and $369 million of cash and short-term investment balances held in wholly-owned
foreign subsidiaries (which includes $441 million and $190 million related to earnings indefinitely invested
outside the United States) as well as $72 million and $304 million held in majority-owned subsidiaries, which is
also indefinitely invested outside the United States; and our $1.5 billion revolving credit facility. Cumulative
earnings related to undistributed earnings of certain foreign subsidiaries that we intend to indefinitely reinvest
outside of the United States totaled $1.5 billion as of December 31, 2015. To date, we have permanently
reinvested the majority of these foreign earnings outside of the United States and we do not intend to repatriate
these earnings to fund U.S. operations. Should we distribute earnings of foreign subsidiaries in the form of
dividends or otherwise, we may be subject to U.S. income taxes.
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