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Income Taxes (Tables)

12 Months Ended

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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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

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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.

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