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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Domestic and Foreign Income (Loss) Before Income Taxes | The following table summarizes our U.S. and foreign income (loss) before income taxes:
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
| (In thousands)
U.S. | $ | (44,867 | ) |  | $ | (47,205 | ) |  | $ | 24,397 |
Foreign | 461,631 |  |  | 323,805 |  |  | 901,565 |
Total | $ | 416,764 |  |  | $ | 276,600 |  |  | $ | 925,962 |
Components of Income Tax Expense | The following table summarizes our provision for income taxes:
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
|  |  | (In thousands) |  |
Current income tax expense: |  |  |  |  |
Federal | $ | 12,671 |  |  | $ | (41,418 | ) |  | $ | 154,050 |
State | 5,862 |  |  | 5,875 |  |  | 1,440 |
Foreign | 130,180 |  |  | 64,946 |  |  | 69,359 |
Current income tax expense | 148,713 |  |  | 29,403 |  |  | 224,849 |
Deferred income tax (benefit) expense: |  |  |  |  |
Federal | (93,842 | ) |  | (5,166 | ) |  | (6,865 | )
State | (891 | ) |  | (2,863 | ) |  | 2,156 |
Foreign | (8,575 | ) |  | (6,059 | ) |  | (16,926 | )
Deferred income tax (benefit) expense: | (103,308 | ) |  | (14,088 | ) |  | (21,635 | )
Income tax expense | $ | 45,405 |  |  | $ | 15,315 |  |  | $ | 203,214 |
Components of Deferred Tax Assets and Deferred Tax Liabilities | As of December 31, 2017 and 2016, the significant components of our deferred tax assets and deferred tax liabilities were as follows:
| December 31,
| 2017 |  | 2016
| (In thousands)
Deferred tax assets: |  |  |
Provision for accrued expenses | $ | 49,526 |  |  | $ | 94,031 |
Loyalty rewards reserve | 131,248 |  |  | 163,410 |
Occupancy tax reserve | 11,017 |  |  | 27,814 |
Net operating loss and tax credit carryforwards | 121,896 |  |  | 114,470 |
Stock-based compensation | 51,706 |  |  | 81,221 |
Other | 36,187 |  |  | 31,569 |
Total deferred tax assets | 401,580 |  |  | 512,515 |
Less valuation allowance | (76,280 | ) |  | (65,516 | )
Net deferred tax assets | $ | 325,300 |  |  | $ | 446,999 |
Deferred tax liabilities: |  |  |
Prepaid merchant bookings and prepaid expenses | $ | (1,372 | ) |  | $ | (20,289 | )
Goodwill and intangible assets | (499,190 | ) |  | (718,810 | )
Property and equipment | (130,736 | ) |  | (152,550 | )
Other | (4,674 | ) |  | (16,662 | )
Total deferred tax liabilities | $ | (635,972 | ) |  | $ | (908,311 | )
Net deferred tax liability | $ | (310,672 | ) |  | $ | (461,312 | )
Schedule of Statutory Federal Income Tax Rate to Income from Continuing Operations before Income Taxes | A reconciliation of amounts computed by applying the federal statutory income tax rate to income before income taxes to total income tax expense is as follows:
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
|  |  | (In thousands) |  |
Income tax expense at the federal statutory rate of 35% | $ | 145,867 |  |  | $ | 96,810 |  |  | $ | 324,087 |
Foreign tax rate differential | (81,509 | ) |  | (66,947 | ) |  | (162,784 | )
Unrecognized tax benefits and related interest | 27,690 |  |  | 33,170 |  |  | 33,362 |
Change in valuation allowance | 3,686 |  |  | (13,924 | ) |  | 27,320 |
Return to provision true-ups | 686 |  |  | (14,420 | ) |  | (8,875 | )
Pay-to-play penalties | — |  |  | — |  |  | (11,222 | )
Acquisition related costs | 1,554 |  |  | 1,611 |  |  | 12,545 |
Federal research and development credit | (16,000 | ) |  | (15,000 | ) |  | (11,500 | )
trivago stock-based-compensation | 5,011 |  |  | 16,956 |  |  | — |
Excess tax benefits related to stock-based compensation | (59,668 | ) |  | (39,751 | ) |  | — |
Tax Act transition tax | 144,167 |  |  | — |  |  | — |
U.S. statutory tax rate change | (158,286 | ) |  | — |  |  | — |
Other, net | 32,207 |  |  | 16,810 |  |  | 281 |
Income tax expense | $ | 45,405 |  |  | $ | 15,315 |  |  | $ | 203,214 |
Income Tax Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
| 2017 |  | 2016 |  | 2015
|  |  | (In thousands) |  |
Balance, beginning of year | $ | 220,532 |  |  | $ | 171,177 |  |  | $ | 110,561 |
Increases to tax positions related to the current year | 35,211 |  |  | 42,877 |  |  | 33,880 |
Increases to tax positions related to prior years | 3,544 |  |  | 8,124 |  |  | 26,219 |
Decreases to tax positions related to prior years | (1,069 | ) |  | (2,262 | ) |  | — |
Reductions due to lapsed statute of limitations | (2,783 | ) |  | (4,688 | ) |  | (2,525 | )
Settlements during current year | (1,213 | ) |  | — |  |  | (100 | )
Interest and penalties | 6,697 |  |  | 5,304 |  |  | 3,142 |
Balance, end of year | $ | 260,919 |  |  | $ | 220,532 |  |  | $ | 171,177 |

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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
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