Go Daddy 2015 Annual Report Download - page 112

Table of Contents
GoDaddy Inc.
Notes to Consolidated Financial Statements
(In millions, except share amounts which are reflected in thousands and per share amounts)
the indemnified portion of the indirect tax liability, and as a result, agreed to release Holdings from its indemnification obligation for certain transaction-based
taxes.
As of December 31, 2015 and 2014 , our accrual for estimated indirect tax liabilities was $7.1 million and $5.9 million , respectively, reflecting our best
estimate of the probable liability based on an analysis of our business activities, revenues subject to indirect taxes and applicable regulations in each jurisdiction.
Although we believe our indirect tax estimates and associated reserves are reasonable, the final determination of indirect tax audits and any related litigation could
be different than the amounts established for indirect tax contingencies.
11. Defined Contribution Plan
We maintain a defined contribution 401(k) plan covering all eligible employees, who may contribute up to 100% of their compensation, subject to
limitations established by the Internal Revenue Code. We match employee contributions on a discretionary basis. Expense for our matching contributions was $8.6
million , $7.7 million and $6.8 million during 2015 , 2014 and 2013 , respectively.
12. Income Taxes
We are required to file federal and applicable state corporate income tax returns and recognize income taxes on pre-tax income, which in prior years
consisted primarily of our share of Desert Newco's pre-tax income. Desert Newco has been and will continue to be treated as a partnership for U.S. income tax
purposes. As such, Desert Newco is considered a pass-through entity and generally does not pay income taxes on its taxable income in most jurisdictions. Instead,
Desert Newco's members, of which we are one, are liable for U.S. federal and state income taxes based on their taxable income. Desert Newco is liable for income
taxes in certain foreign jurisdictions, in those states not recognizing its pass-through status and for certain subsidiaries not taxed as pass-through entities. We have
acquired the outstanding stock of various entities taxed as corporations, which are now owned 100% by us or our subsidiaries and are treated as an independent
consolidated group for federal income tax purposes. Where required or allowed, these subsidiaries also file as a consolidated group for state income tax purposes.
We anticipate this structure to remain in existence for the foreseeable future.
Our tax provision includes federal, state and foreign income taxes. The domestic and foreign components of our loss before income taxes were as follows:
Year Ended December 31,
2015
2014
2013
U.S. loss before tax $ (121.2)
$ (149.0)
$ (203.4)
Foreign income before tax 0.6
2.9
2.4
Loss before income taxes $ (120.6)
$ (146.1)
$ (201.0)
The benefit for income taxes was as follows:
Year Ended December 31,
2015
2014
2013
Current:
Federal $ (0.3)
$ (0.1)
$ (0.1)
State (0.1)
(0.3)
—
Foreign (2.4)
(3.6)
(1.9)
(2.8)
(4.0)
(2.0)
Deferred:
Federal 2.4
4.9
2.9
State 0.4
1.7
0.4
Foreign 0.2
0.2
(0.2)
3.0
6.8
3.1
Benefit for income taxes $ 0.2
$ 2.8
$ 1.1
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