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SEC Filings

20-F
TRIVAGO N.V. filed this Form 20-F on 03/06/2018
Entire Document
 



In 2013, an uncertain tax position was provided for related to the deductibility of certain compensation payments in 2010 and 2011. In 2015, a tax audit was finalized for the years 2009 through to 2012. This resulted in a full release of the uncertain tax position. There are no uncertain tax positions provided for as of December 31, 2016 or 2017.
The Company is subject to audit by federal, state, local and foreign income tax authorities. As of December 31, 2017, for trivago and its subsidiaries, statute of limitations for tax years 2013 through 2017 remain open to examination by German tax authorities.
At December 31, 2017 there are no tax returns for trivago or subsidiaries under audit.
Deferred income taxes
At December 31, 2016 and 2017, the significant components of our deferred tax assets and deferred tax liabilities were as follows:
  
 
Year Ended December 31,
(in thousands)
 
2016

 
2017

Deferred tax assets:
 

 

Net operating loss and tax credit carryforwards
 
3,566

 
2,522

Prepaid expense and other current assets
 
1,285

 
2,458

Property and Equipment
 
372

 
537

Deferred rent
 
882

 
1,429

Accrued expenses and other current liabilities
 
51

 
473

Accounts payable, other
 
5

 

Other
 
26

 
731

Total deferred tax assets
 
6,187

 
8,150

Less valuation allowance
 
(3,550
)
 
(348
)
Net deferred tax assets
 
2,637

 
7,802

 
 
 
 
 
Deferred tax liabilities:
 

 

Intangible assets, net
 
54,972

 
53,981

Property and equipment
 
812

 
2,059

Accrued expenses and other current liabilities
 

 
67

Other
 
9

 

Total deferred tax liabilities
 
55,793

 
56,107

Net deferred tax asset/(liability)
 
(53,156
)
 
(48,305
)
At December 31, 2017, we had net operating loss carryforwards (“NOLs”) for a tax-effected amount of approximately €2.5 million. The tax-effected NOL carryforwards decreased by €1.1 million from the amount recorded at December 31, 2016 primarily due to utilization of pre-tax losses at the level of the trivago N.V.
trivago N.V. is a Dutch listed entity, however has its tax residency in Germany. In 2017, trivago N.V. and trivago GmbH merged for tax purposes. This merger enables trivago N.V. to offset its NOLs with any future taxable profits of trivago GmbH. As a result, the €3.2 million previously unrecognized losses of trivago N.V. have been fully recognized in FY 2017.
Of this €3.2 million, €2.5 million of NOLs have not been utilized at December 31, 2017. If not utilized, the tax-effected NOL carryforwards of €2.5 million may be carried forward indefinitely.
The tax-effected valuation allowance decreased by €3.5 million from the amount recorded at December 31, 2016. Of this €3.5 million decrease in tax-effected valuation allowance, €3.2 million relates to the recognition of previously unrecognized losses at the trivago N.V. level, and €0.3 million relates to the utilization of previously unrecognized losses at the level of Base7 S.à.r.l., a Swiss subsidiary.

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