v3.25.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Summary of Our Domestic and Foreign Income (Loss) Before Income Taxes

The following table presents a summary of our domestic and foreign income (loss) before income taxes for the periods presented:

 

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(in millions)

 

Domestic

 

$

61

 

 

$

95

 

 

$

37

 

Foreign

 

 

26

 

 

 

30

 

 

 

30

 

Income (loss) before income taxes

 

$

87

 

 

$

125

 

 

$

67

 
Summary of the Components of Our Provision (Benefit) for Income Taxes

The components of our provision (benefit) for income taxes consisted of the following for the periods presented:

 

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(in millions)

 

Current income tax expense (benefit):

 

 

 

 

 

 

 

 

 

Federal

 

$

129

 

 

$

94

 

 

$

37

 

State

 

 

29

 

 

 

25

 

 

 

3

 

Foreign

 

 

(62

)

 

 

21

 

 

 

26

 

Current income tax expense (benefit)

 

 

96

 

 

 

140

 

 

 

66

 

Deferred income tax expense (benefit):

 

 

 

 

 

 

 

 

 

Federal

 

 

(13

)

 

 

(9

)

 

 

(19

)

State

 

 

2

 

 

 

6

 

 

 

1

 

Foreign

 

 

(3

)

 

 

(22

)

 

 

(1

)

Deferred income tax expense (benefit)

 

 

(14

)

 

 

(25

)

 

 

(19

)

Provision (benefit) for income taxes

 

$

82

 

 

$

115

 

 

$

47

 
Summary of Deferred Tax Assets and Deferred Tax Liabilities

The significant components of our deferred tax assets and deferred tax liabilities consisted of the following as of the dates presented:

 

 

 

December 31,

 

 

 

2024

 

 

2023

 

 

 

(in millions)

 

Deferred tax assets:

 

 

 

 

 

 

Stock-based compensation

 

$

9

 

 

$

14

 

Net operating loss carryforwards

 

 

93

 

 

 

96

 

Provision for accrued expenses

 

 

10

 

 

 

8

 

Lease financing obligation

 

 

12

 

 

 

13

 

Foreign advertising spend

 

 

13

 

 

 

14

 

Tax credit carryforward

 

 

8

 

 

 

10

 

Capitalized research expenses

 

 

71

 

 

 

52

 

Interest carryforward

 

 

40

 

 

 

32

 

Other

 

 

8

 

 

 

14

 

Total deferred tax assets

 

$

264

 

 

$

253

 

Less: valuation allowance

 

 

(106

)

 

 

(106

)

Net deferred tax assets

 

$

158

 

 

$

147

 

Deferred tax liabilities:

 

 

 

 

Intangible assets

 

$

(42

)

 

$

(42

)

Property and equipment

 

 

(2

)

 

 

(3

)

Prepaid expenses

 

 

(3

)

 

 

(4

)

Building - corporate headquarters

 

 

(10

)

 

 

(12

)

Other

 

 

(1

)

 

 

(1

)

Total deferred tax liabilities

 

$

(58

)

 

$

(62

)

Net deferred tax asset (liability)

 

$

100

 

 

$

85

 

 
Reconciliation of the (Benefit) Provision for Income Taxes

A reconciliation of the provision (benefit) for income taxes to the amounts computed by applying the statutory federal income tax rate to income (loss) before income taxes is as follows for the periods presented:

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(in millions)

 

Income tax expense at the federal statutory rate

 

$

18

 

 

$

26

 

 

$

14

 

State income taxes, net of effect of federal tax benefit

 

 

5

 

 

 

6

 

 

 

5

 

Unrecognized tax benefits and related interest

 

 

4

 

 

 

27

 

 

 

17

 

IRS audit settlements

 

 

42

 

 

 

31

 

 

 

—

 

Additional IRS audit impacts (1)

 

 

6

 

 

 

—

 

 

 

—

 

Transfer pricing reserve adjustment

 

 

(4

)

 

 

24

 

 

 

—

 

FDII, GILTI and other provisions

 

 

(7

)

 

 

(9

)

 

 

(2

)

Research tax credit

 

 

(6

)

 

 

(4

)

 

 

(2

)

Stock-based compensation

 

 

15

 

 

 

22

 

 

 

11

 

Change in valuation allowance

 

 

(1

)

 

 

(6

)

 

 

5

 

Executive compensation

 

 

4

 

 

 

2

 

 

 

1

 

Other, net

 

 

6

 

 

 

(4

)

 

 

(2

)

Provision (benefit) for income taxes

 

$

82

 

 

$

115

 

 

$

47

 
(1)
Amount relates to incremental interest associated with the 2009 through 2011 tax years IRS audit period with Expedia. See below for further information regarding this IRS audit settlement.
Reconciliation of the Beginning and Ending Amount of Gross Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits (excluding interest and penalties) is as follows during the periods presented:

 

 

December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(in millions)

 

Balance, beginning of year

 

$

136

 

 

$

157

 

 

$

144

 

Increases to tax positions related to the current year

 

 

2

 

 

 

8

 

 

 

5

 

Increases to tax positions related to the prior year

 

 

34

 

 

 

17

 

 

 

29

 

Decreases due to lapsed statute of limitations

 

 

—

 

 

 

—

 

 

 

(20

)

Decreases due to tax positions related to the prior year

 

 

(3

)

 

 

(6

)

 

 

(1

)

Settlements during current year

 

 

(70

)

 

 

(40

)

 

 

—

 

Balance, end of year

 

$

99

 

 

$

136

 

 

$

157