Income tax (Tables)

12 Months Ended

Dec. 31, 2019

	2019			2018			2017
	(in € millions)
Current tax expense
Current year		45			41			6
Changes in estimates in respect to prior year		(1	)		—			1
		44			41			7
Deferred tax expense/(benefit)
Temporary differences		27			(123	)		(5	)
Change in recognition of deferred tax		(17	)		(14	)		—
Change in tax rates		1			1			—
		11			(136	)		(5	)
Income tax expense/(benefit)		55			(95	)		2

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 24.94%, 26.01%, and 27.08%, and on the consolidated loss before taxes for the years ended December 31, 2019, 2018, and 2017, respectively, is shown in the table below:

	2019			2018			2017
	(in € millions)
Loss before tax		(131	)		(173	)		(1,233	)
Tax using the Luxembourg tax rate		(33	)		(45	)		(334	)
Effect of tax rates in foreign jurisdictions		2			(11	)		(10	)
Permanent differences		58			(7	)		15
Change in unrecognized deferred taxes		29			(43	)		329
Deferred tax on foreign exchange differences		1			8			—
Other		(2	)		3			2
Income tax expense/(benefit)		55			(95	)		2

Schedule of Major Components of Deferred Tax Assets and Liabilities

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

	2019			2018
	(in € millions)
Intangible assets		(42	)		(1	)
Share-based compensation		14			6
Tax losses carried forward		78			147
Property and equipment		79			5
Unrealized gains		(126	)		(154	)
Other		4			3
Net tax		7			6

Summary of Reconciliation of Net Deferred Tax

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

	2019			2018			2017
	(in € millions)
At January 1		6			6			3
Movement recognized in consolidated statement of operations		(11	)		136			5
Movement recognized in consolidated statement of changes in equity and other comprehensive income		18			(136	)		2
Movement due to acquisition		(6	)		—			(4	)
At December 31		7			6			6

Summary of Deferred Tax Reconciliation to Balance Sheet

Reconciliation to consolidated statement of financial position	2019		2018
	(in € millions)
Deferred tax assets		9		8
Deferred tax liabilities		2		2

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.

	2019		2018
	(in € millions)
Intangible assets		77		72
Share-based compensation		58		34
Tax losses carried forward		192		148
Unrealized losses		3		2
Other		49		20
		379		276

Schedule of Tax Loss Carry-forwards Expected to Expire

Tax loss carry-forwards as at December 31, 2019 were expected to expire as follows:

Expected expiry	2020-2029		2030 and onwards		Unlimited		Total
	(in € millions)
Tax loss carry-forwards		—		509		996		1,505
Research and development credit carryforward		—		16		—		16
Foreign tax credits		4		—		—		4