Income tax (Tables)

12 Months Ended

Dec. 31, 2018

	2018			2017			2016
	(in € millions)
Current tax expense/(benefit)
Current year		41			6			5
Changes in estimates in respect to prior year		—			1			(1	)
		41			7			4
Deferred tax (benefit)/expense
Temporary differences		(123	)		(5	)		(1	)
Change in recognition of deferred tax		(14	)		—			—
Change in tax rates		1			—			1
		(136	)		(5	)		—
Income tax (benefit)/expense		(95	)		2			4

Summary of Reconciliation Between Reported Tax Expense and Theoretical Tax Expense Loss Before Taxes

A reconciliation between the reported tax expense for the year, and the theoretical tax expense that would arise when applying the statutory tax rate in Luxembourg of 26.01%, 27.08%, and 29.22%, and on the consolidated loss before taxes for the years ended December 31, 2018, 2017, and 2016, respectively, is shown in the table below:

	2018			2017			2016
	(in € millions)
Loss before tax		(173	)		(1,233	)		(535	)
Tax using the Luxembourg tax rate		(45	)		(334	)		(156	)
Effect of tax rates in foreign jurisdictions		(11	)		(10	)		15
Permanent differences		(7	)		15			12
Change in unrecognized deferred taxes		(43	)		329			132
Deferred tax on foreign exchange differences		8			—			—
Other		3			2			1
Income tax (benefit)/expense		(95	)		2			4

Schedule of Major Components of Deferred Tax Assets and Liabilities

The major components of deferred tax assets and liabilities are comprised of the following:

	2018			2017
	(in € millions)
Intangible assets		(1	)		(4	)
Share-based compensation		6			4
Tax losses carried forward		147			3
Property and equipment		5			3
Unrealized gains		(154	)		—
Other		3			—
Net tax		6			6

Summary of Reconciliation of Net Deferred Tax

A reconciliation of net deferred tax is shown in the table below:

	2018			2017			2016
	(in € millions)
At January 1		6			3			4
Movement recognized in consolidated statement of operations		136			5			1
Movement recognized in consolidated statement of changes in equity and other comprehensive income		(136	)		2			(2	)
Movement due to acquisition		—			(4	)		—
At December 31		6			6			3

Summary of Deferred Tax Reconciliation to Balance Sheet

Reconciliation to consolidated statement of financial position	2018		2017
	(in € millions)
Deferred tax assets		8		9
Deferred tax liabilities		2		3

Summary of Deferred Tax Assets Unrecognized

Deferred tax assets have not been recognized in respect of the following items, because it is not probable that future taxable profit will be available against which the Group can use the benefits.

	2018		2017
	(in € millions)
Intangible assets		72		74
Share-based compensation		34		115
Tax losses carried forward		148		258
Unrealized losses		2		114
Property and equipment		—		4
Foreign tax credits		—		4
Other		20		12
		276		581

Schedule of Tax Loss Carry-forwards Expected to Expire

Tax loss carry-forwards as at December 31, 2018 were expected to expire as follows:

Expected expiry	2018-2026		2027 and onwards		Unlimited		Total
	(in € millions)
Tax loss carry-forwards		—		467		1,164		1,631
Foreign tax credits		5		—		—		5