Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Income Taxes (Tables)

v3.3.1.900
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2015
Income Taxes [Abstract]  
Summary Of Income Tax Expense (Benefit) By Tax Jurisdiction

The following table presents our provision for income taxes by tax jurisdiction for the years ended December 31, 2015, 2014 and 2013:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

2015

 

2014

 

2013

Deferred tax expense (benefit)

 

 

 

 

 

 

 

 

The Netherlands

$

(7,453)

 

$

1,339 

 

$

686 

Ireland

 

151,623 

 

 

87,147 

 

 

17,158 

United States of America

 

(65,341)

 

 

26,267 

 

 

3,686 

Other

 

22,130 

 

 

(5,744)

 

 

(344)

 

 

100,959 

 

 

109,009 

 

 

21,186 

 

 

 

 

 

 

 

 

 

Deferred tax expense (benefit) related to an increase (decrease) in changes in valuation allowance of deferred tax assets

 

 

 

 

 

 

 

 

The Netherlands

 

13,915 

 

 

 —

 

 

 —

United States of America

 

10,074 

 

 

 —

 

 

 —

Other

 

(13,922)

 

 

6,850 

 

 

 —

 

 

10,067 

 

 

6,850 

 

 

 —

 

 

 

 

 

 

 

 

 

Current tax expense (benefit)

 

 

 

 

 

 

 

 

The Netherlands

 

37,512 

 

 

5,290 

 

 

4,840 

Ireland

 

(99)

 

 

229 

 

 

 —

United States of America

 

39,358 

 

 

15,553 

 

 

 —

Other

 

2,008 

 

 

442 

 

 

 —

 

 

78,779 

 

 

21,514 

 

 

4,840 

Provision for income taxes

$

189,805 

 

$

137,373 

 

$

26,026 

 

Reconciliation Of Statutory Income Tax Expense/(Benefit)

The following table provides a reconciliation of the statutory income tax expense to provision for income taxes for the years ended December 31, 2015, 2014 and 2013:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

2015

 

2014

 

2013

Income tax expense at statutory income tax rate of 25%

$

341,425 

 

$

229,224 

 

$

77,698 

 

 

 

 

 

 

 

 

 

Non-deductible expenditures (permanent differences) (a)

 

59,234 

 

 

24,426 

 

 

(128)

Foreign rate differential

 

(210,854)

 

 

(116,277)

 

 

(51,544)

 

 

(151,620)

 

 

(91,851)

 

 

(51,672)

Provision for income taxes

$

189,805 

 

$

137,373 

 

$

26,026 

                   

 

(a)

The 2015 non-deductible expenditures  included the non-deductible intercompany interest allocated to the United States of America, non-deductible share-based compensation in the Netherlands, non-deductible costs relating to the transfer of certain functions from the Netherlands to Ireland, and a valuation allowance taken in respect of U.S. and Dutch tax losses. In the United States of America, due to the restructuring of certain entities, previously disallowed tax assets can now be utilized against additional projected taxable income, resulting in the release of $25.0 million of valuation allowance from the opening balance sheet. It also included the non-taxable income arising from aircraft with a higher tax basis in general. The 2014 non-deductible expenditures included the non-deductible intercompany interest allocated to the United States of America, non-deductible share-based compensation in the Netherlands and the non-deductible transaction costs from the ILFC Transaction.

Schedule Of Global Tax Activities

The following tables present our foreign rate differential by tax jurisdiction for the years ended December 31, 2015, 2014 and 2013:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2015

 

Pre-tax income (loss)

 

Local statutory tax rate (a)

 

Variance to Dutch statutory tax rate of 25.0%

 

Tax variance as a result of global activities (b)

Tax jurisdiction

 

 

 

 

 

 

 

 

 

 

 

The Netherlands

$

175,897 

 

25.0 

%

 

0.0 

%

 

$

 —

Ireland

 

1,212,190 

 

12.5 

%

 

(12.5)

%

 

 

(151,524)

United States of America

 

(43,825)

 

36.3 

%

 

11.3 

%

 

 

(4,952)

Isle of Man

 

181,118 

 

0.0 

%  

 

(25.0)

%  

 

 

(45,280)

Other

 

77,671 

 

13.3 

%  

 

(11.7)

%  

 

 

(9,099)

 

$

1,603,051 

 

 

 

 

 

 

 

$

(210,854)

Loss arising from non-taxable items (c)

 

(237,352)

 

 

 

 

 

 

 

 

 

Income from continuing operations before income tax

$

1,365,699 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2014

 

Pre-tax income (loss)

 

Local statutory tax rate (a)

 

Variance to Dutch statutory tax rate of 25.0%

 

Tax variance as a result of global activities (b)

Tax jurisdiction

 

 

 

 

 

 

 

 

 

 

 

The Netherlands

$

26,081 

 

25.0 

%

 

0.0 

%

 

$

 —

Ireland

 

694,605 

 

12.5 

%

 

(12.5)

%

 

 

(86,826)

United States of America

 

95,585 

 

38.3 

%

 

13.3 

%

 

 

12,713 

Isle of Man

 

167,689 

 

0.0 

%  

 

(25.0)

%  

 

 

(41,922)

Other

 

7,528 

 

23.0 

%  

 

(2.0)

%  

 

 

(242)

 

$

991,488 

 

 

 

 

 

 

 

$

(116,277)

Loss arising from non-taxable items (c)

 

(74,590)

 

 

 

 

 

 

 

 

 

Income from continuing operations before income tax

$

916,898 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2013

 

Pre-tax income (loss)

 

Local statutory tax rate (a)

 

Variance to Dutch statutory tax rate of 25.0%

 

Tax variance as a result of global activities (b)

Tax jurisdiction

 

 

 

 

 

 

 

 

 

 

 

The Netherlands

$

22,106 

 

25.0 

%

 

0.0 

%

 

$

 —

Ireland

 

135,424 

 

12.5 

%

 

(12.5)

%

 

 

(16,928)

United States of America

 

10,354 

 

35.6 

%

 

10.6 

%

 

 

1,098 

Sweden

 

(1,848)

 

18.6 

%

 

(6.4)

%

 

 

118 

Isle of Man

 

143,327 

 

0.0 

%  

 

(25.0)

%  

 

 

(35,832)

 

$

309,363 

 

 

 

 

 

 

 

$

(51,544)

Income arising from non-taxable items

 

1,428 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income tax

$

310,791 

 

 

 

 

 

 

 

 

 

                   

 

(a)

The local statutory income tax expense for our significant tax jurisdictions (the Netherlands, Ireland, the United States of America and Isle of Man) does not differ from the actual income tax expense.

(b)

The tax variance as a result of global activities is primarily caused by our operations in countries with a lower statutory tax rate than the statutory tax rate in the Netherlands.

(c)

The 2015 non-taxable income included the non-deductible intercompany interest allocated to the United States of America, non-deductible share-based compensation in the Netherlands, non-deductible costs relating to the transfer of certain functions from the Netherlands to Ireland, and a valuation allowance taken in respect of U.S. and Dutch tax losses. The 2014 non-taxable income included the non-deductible intercompany interest allocated to the United States of America, non-deductible share-based compensation in the Netherlands and the non-deductible transaction costs from the ILFC Transaction.

Deferred Tax Assets And Liabilities

The following tables provide details regarding the principal components of our deferred income tax assets and liabilities by jurisdiction as of December 31, 2015 and 2014:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2015

 

The
Netherlands

 

Ireland

 

United States
of America

 

Other

 

Total

Depreciation/Impairment

$

11,580 

 

$

(876,219)

 

$

5,393 

 

$

963 

 

$

(858,283)

Intangibles

 

 —

 

 

(10,071)

 

 

(18,763)

 

 

 —

 

 

(28,834)

Interest expense

 

 —

 

 

 —

 

 

(5,435)

 

 

 —

 

 

(5,435)

Accrued maintenance liability

 

 —

 

 

(7,003)

 

 

11,880 

 

 

 —

 

 

4,877 

Obligations under capital leases and debt obligations

 

 —

 

 

(3,411)

 

 

 —

 

 

 —

 

 

(3,411)

Investments

 

 —

 

 

 —

 

 

(10,155)

 

 

 —

 

 

(10,155)

Deferred losses

 

 —

 

 

 —

 

 

66,543 

 

 

 —

 

 

66,543 

Accrued expenses

 

 —

 

 

 —

 

 

14,554 

 

 

 —

 

 

14,554 

Valuation allowance

 

(13,915)

 

 

 —

 

 

(35,074)

 

 

(23,011)

 

 

(72,000)

Losses and credits forward

 

13,915 

 

 

630,302 

 

 

32,342 

 

 

39,282 

 

 

715,841 

Other

 

(2,936)

 

 

(20,647)

 

 

7,350 

 

 

(11,651)

 

 

(27,884)

Net deferred income tax assets (liabilities)

$

8,644 

 

$

(287,049)

 

$

68,635 

 

$

5,583 

 

$

(204,187)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2014

 

The
Netherlands

 

Ireland

 

United States
of America

 

Other

 

Total

Depreciation/Impairment

$

12,479 

 

$

(618,323)

 

$

(28,964)

 

$

(3,189)

 

$

(637,997)

Debt

 

 —

 

 

(355)

 

 

1,681 

 

 

 —

 

 

1,326 

Intangibles

 

 —

 

 

(73)

 

 

(36,960)

 

 

 —

 

 

(37,033)

Interest expense

 

 —

 

 

 —

 

 

6,008 

 

 

 —

 

 

6,008 

Accrued maintenance liability

 

 —

 

 

(7,673)

 

 

19,816 

 

 

 —

 

 

12,143 

Obligations under capital leases and debt obligations

 

 —

 

 

(3,725)

 

 

 —

 

 

 —

 

 

(3,725)

Investments

 

 —

 

 

2,500 

 

 

(5,446)

 

 

 —

 

 

(2,946)

Deferred losses

 

 —

 

 

 —

 

 

49,787 

 

 

 —

 

 

49,787 

Accrued expenses

 

 —

 

 

 —

 

 

26,532 

 

 

 —

 

 

26,532 

Valuation allowance

 

 —

 

 

 —

 

 

(25,000)

 

 

(36,933)

 

 

(61,933)

Losses and credits forward

 

 —

 

 

514,757 

 

 

3,586 

 

 

43,949 

 

 

562,292 

Other

 

3,210 

 

 

(1,127)

 

 

2,870 

 

 

(13,241)

 

 

(8,288)

Net deferred income tax assets (liabilities)

$

15,689 

 

$

(114,019)

 

$

13,910 

 

$

(9,414)

 

$

(93,834)

 

Summary Of Valuation Allowance

The following table presents the movements in the valuation allowance for deferred income tax assets during the years ended December 31, 2015 and 2014:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

2015

 

2014

Valuation allowance at beginning of period

$

61,933 

 

$

 —

ILFC Transaction

 

 —

 

 

55,083 

Increase of allowance to income tax provision

 

10,067 

 

 

6,850 

Valuation allowance at end of period

$

72,000 

 

$

61,933