Travelport LTD - 10-K filing on 2014-03-10

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

The provision for income taxes consisted of:


(in $ millions)	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2011
Current
US Federal		—			(2	)		—
US State		2			(2	)		—
Non-US		(21	)		(17	)		(23	)

		(19	)		(21	)		(23	)

Deferred
US Federal		3			(3	)		(3	)
Non-US		(2	)		(1	)		—

		1			(4	)		(3	)

Non-current
Liabilities for uncertain tax positions		(2	)		2			(3	)

Provision for income taxes		(20	)		(23	)		(29	)

Income (Loss) from Continuing Operations Before Income Taxes and Equity in Earnings (Losses) of Investment in Orbitz Worldwide for US and Non-US Operations

Income (loss) from continuing operations before income taxes and equity in earnings (losses) of investment in Orbitz Worldwide for US and non-US operations consisted of:


(in $ millions)	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2011
US		14			(59	)		46
Non-US		(197	)		(87	)		(133	)

Loss from continuing operations before income taxes and equity in earnings (losses) of investment in Orbitz Worldwide		(183	)		(146	)		(87	)

Deferred Income Tax Assets and Liabilities

Deferred income tax assets and liabilities were comprised of:


(in $ millions)	December 31, 2013			December 31, 2012
Deferred tax assets:
Accrued liabilities and deferred income		17			12
Allowance for doubtful accounts		4			3
NOL and tax credit carry forwards		293			202
Pension liability		24			62
Other assets		21			33
Less: Valuation allowance		(345	)		(302	)

Total deferred tax assets		14			10
Netted against deferred tax liabilities		(8	)		(2	)

Deferred tax assets recognized on the balance sheet		6			8

Deferred tax liabilities:
Accumulated depreciation and amortization		(44	)		(41	)
Other		(6	)		(6	)

Total deferred tax liabilities		(50	)		(47	)
Netted against deferred tax assets		8			2

Deferred tax liabilities recognized on the balance sheet		(42	)		(45	)

Net deferred tax liability		(36	)		(37	)

Provision for Income Taxes Differs from Tax Benefit at US Federal Statutory Rate

The Company’s provision for income taxes differs from its tax benefit at the US Federal statutory rate of 35% as follows:


(in $ millions)	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2011
Tax benefit at US federal statutory rate of 35%		64			51			30
Taxes on non-US operations at alternative rates		(12	)		(29	)		(55	)
Liability for uncertain tax positions		(2	)		2			(3	)
Change in valuation allowance		(66	)		(46	)		(1	)
Non-deductible expenses		(7	)		(4	)		(5	)
Adjustment in respect of prior years		3			5			3
State taxes		—			(2	)		—
Other		—			—			2

Provision for income taxes		(20	)		(23	)		(29	)

Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:


(in $ millions)	December 31, 2013			December 31, 2012			December 31, 2011
Unrecognized tax benefit — opening balance		23			25			57
Gross increases — tax positions in prior periods		8			6			—
Gross decreases — tax positions in prior periods		(5	)		(6	)		(3	)
Gross increases — tax positions in current period		1			—			6
Decrease related to lapsing of statute of limitations		(2	)		(2	)		—
Decrease due to disposals		—			—			(32	)
Settlements		(1	)		—			(3	)

Unrecognized tax benefit — ending balance		24			23			25