Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Taxes

Schedule of income tax expense

	Years ended
	December 31,
	2014		2013	2012
	(amounts in millions)
Current:
Federal	$	(77)	(32)	(41)
State and local		(22)	(10)	(7)
Foreign		(6)	(20)	(1)
	$	(105)	(62)	(49)
Deferred:
Federal	$	55	9	(68)
State and local		(16)	76	(8)
Foreign		31	32	1
		70	117	(75)
Income tax benefit (expense)	$	(35)	55	(124)

Schedule of income before income taxes

	Years ended
	December 31,
	2014		2013	2012
	(amounts in millions)
Domestic	$	4	(23)	1,104
Foreign		40	(5)	—
Total	$	44	(28)	1,104

Schedule of income tax expense reconciliation to the effective tax rate

	Years ended
	December 31,
	2014		2013	2012
	(amounts in millions)
Computed expected tax benefits (expense)	$	(16)	10	(386)
State and local taxes, net of federal income taxes		(7)	(3)	(9)
Foreign taxes, net of foreign tax credits		28	15	(1)
Change in estimated tax rate		(15)	46	—
Goodwill impairment		—	—	(13)
Consolidation of TripAdvisor		—	—	294
Basis difference in consolidated subsidiary		(5)	—	(8)
Change in valuation allowance		(7)	(3)	—
Change in unrecognized tax benefits		(14)	(9)	—
Other		1	(1)	(1)
Income tax (expense) benefit	$	(35)	55	(124)

Schedule of deferred tax assets and liabilities

	December 31,
	2014		2013
	(amounts in millions)
Deferred tax assets:
Net operating loss carryforwards	$	48	27
Stock-based compensation		45	28
Other		61	10
Total deferred tax assets		154	65
Less: valuation allowance		(23)	(15)
Net deferred tax assets		131	50
Deferred tax liabilities:
Intangible assets		(870)	(869)
Investments		(12)	(8)
Other		(57)	(19)
Total deferred tax liabilities		(939)	(896)
Net deferred tax liability	$	(808)	(846)

Schedule of deferred taxes as reported in the balance sheet

	December 31,
	2014		2013
	(amounts in millions)
Current deferred tax asset	$	11	6
Noncurrent deferred tax asset		2	1
Noncurrent deferred tax liability		(821)	(853)
	$	(808)	(846)

Schedule of gross unrecognized tax benefit

A reconciliation of unrecognized tax benefits is as follows (amounts in millions):

	Years ended
	December 31,
	2014		2013
Balance at beginning of year	$	36	24
Additions based on tax positions related to the current year		13	12
Additions for tax positions of prior years		18	4
Reductions for tax positions of prior years		—	(4)
Balance at end of year	$	67	36