Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Twitter Inc., income tax expense (benefit), continuing operations

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Federal	(1,382)	(199)	563)	(1,661)	1,977)
State	741)	677)	3,375)	4,083)	316)
Foreign	39,711)	19,813)	43,053)	17,246)	16,767)
Current provision for income taxes	39,070)	20,291)	46,991)	19,668)	19,060)
Federal	(185,081)	(35,651)	2,023)	(711,084)	(4,701)
State	(24,405)	(2,248)	2,050)	(49,047)	(67)
Foreign	(19,288)	1,102,295)	(1,126,584)	(41,589)	(1,647)
Deferred provision (benefit) for income taxes	(228,774)	1,064,396)	(1,122,511)	(801,720)	(6,415)
Provision (benefit) for income taxes	(189,704)	1,084,687)	(1,075,520)	(782,052)	12,645)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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Item	Description	The company
Current provision for income taxes	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Twitter Inc. current provision for income taxes decreased from 2019 to 2020 but then increased from 2020 to 2021 not reaching 2019 level.
Deferred provision (benefit) for income taxes	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Twitter Inc. deferred provision (benefit) for income taxes increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.
Provision (benefit) for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Twitter Inc. provision (benefit) for income taxes increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.

Twitter Inc., effective income tax rate (EITR) reconciliation

		Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
	Tax at federal statutory rate	21.00%	21.00%	21.00%	21.00%	35.00%
	Effective tax rate	46.14%	-2,129.38%	-275.70%	-184.60%	-13.30%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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Item	Description	The company
Effective tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Twitter Inc. effective tax rate decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Twitter Inc., components of deferred tax assets and liabilities

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net operating loss carryforwards	487,729)	421,411)	390,005)	513,427)	720,444)
Tax credits	586,026)	485,106)	425,011)	375,699)	—)
Fixed assets and intangible assets	1,152,360)	1,280,597)	1,214,070)	24,819)	10,803)
Operating lease liability	299,514)	230,837)	170,817)	—)	—)
Litigation Settlement	194,897)	—)	—)	—)	—)
Other	169,278)	82,596)	90,115)	109,995)	424,827)
Deferred tax assets	2,889,804)	2,500,547)	2,290,018)	1,023,940)	1,156,074)
Valuation allowance	(1,414,632)	(1,457,137)	(223,775)	(210,862)	(1,021,326)
Deferred tax assets, net of valuation allowance	1,475,172)	1,043,410)	2,066,243)	813,078)	134,748)
Operating lease right-of-use asset	(276,855)	(215,663)	(157,845)	—)	—)
Fixed assets and intangible assets	—)	—)	—)	—)	(111,924)
Other	(50,716)	(32,451)	(1,138)	(4,619)	(12,607)
Deferred tax liabilities	(327,571)	(248,114)	(158,983)	(4,619)	(124,531)
Net deferred tax assets	1,147,601)	795,296)	1,907,260)	808,459)	10,217)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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Item	Description	The company
Deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Twitter Inc. deferred tax assets increased from 2019 to 2020 and from 2020 to 2021.
Deferred tax assets, net of valuation allowance	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Twitter Inc. deferred tax assets, net of valuation allowance decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.
Net deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Twitter Inc. net deferred tax assets decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.

Twitter Inc., deferred tax assets and liabilities, classification

US$ in thousands

		Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
	Deferred tax assets	1,148,573)	796,326)	1,908,086)	808,459)	10,455)
	Deferred tax liabilities (included in Deferred and other long-term tax liabilities, net)	972)	1,030)	826)	—)	238)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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Item	Description	The company
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Twitter Inc. deferred tax assets decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.
Deferred tax liabilities (included in Deferred and other long-term tax liabilities, net)	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Twitter Inc. deferred tax liabilities (included in Deferred and other long-term tax liabilities, net) increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.

Twitter Inc., adjustments to financial statements

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Adjustment to Total Assets
Total assets (as reported)	14,059,516)	13,379,090)	12,703,389)	10,162,572)	7,412,477)
Less: Noncurrent deferred tax assets, net	1,148,573)	796,326)	1,908,086)	808,459)	10,455)
Total assets (adjusted)	12,910,943)	12,582,764)	10,795,303)	9,354,113)	7,402,022)
Adjustment to Total Liabilities
Total liabilities (as reported)	6,752,317)	5,409,008)	3,999,003)	3,356,978)	2,365,259)
Less: Noncurrent deferred tax liabilities, net	972)	1,030)	826)	—)	238)
Total liabilities (adjusted)	6,751,345)	5,407,978)	3,998,177)	3,356,978)	2,365,021)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	7,307,199)	7,970,082)	8,704,386)	6,805,594)	5,047,218)
Less: Net deferred tax assets (liabilities)	1,147,601)	795,296)	1,907,260)	808,459)	10,217)
Stockholders’ equity (adjusted)	6,159,598)	7,174,786)	6,797,126)	5,997,135)	5,037,001)
Adjustment to Net Income (loss)
Net income (loss) (as reported)	(221,409)	(1,135,626)	1,465,659)	1,205,596)	(108,063)
Add: Deferred income tax expense (benefit)	(228,774)	1,064,396)	(1,122,511)	(801,720)	(6,415)
Net income (loss) (adjusted)	(450,183)	(71,230)	343,148)	403,876)	(114,478)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Twitter Inc., Financial Data: Reported vs. Adjusted

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Twitter Inc., adjusted financial ratios

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net Profit Margin
Reported net profit margin	-4.36%	-30.56%	42.37%	39.63%	-4.42%
Adjusted net profit margin	-8.87%	-1.92%	9.92%	13.28%	-4.69%
Total Asset Turnover
Reported total asset turnover	0.36	0.28	0.27	0.30	0.33
Adjusted total asset turnover	0.39	0.30	0.32	0.33	0.33
Financial Leverage
Reported financial leverage	1.92	1.68	1.46	1.49	1.47
Adjusted financial leverage	2.10	1.75	1.59	1.56	1.47
Return on Equity (ROE)
Reported ROE	-3.03%	-14.25%	16.84%	17.71%	-2.14%
Adjusted ROE	-7.31%	-0.99%	5.05%	6.73%	-2.27%
Return on Assets (ROA)
Reported ROA	-1.57%	-8.49%	11.54%	11.86%	-1.46%
Adjusted ROA	-3.49%	-0.57%	3.18%	4.32%	-1.55%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Twitter Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Twitter Inc. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Twitter Inc. adjusted financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Twitter Inc. adjusted ROE deteriorated from 2019 to 2020 and from 2020 to 2021.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Twitter Inc. adjusted ROA deteriorated from 2019 to 2020 and from 2020 to 2021.

Twitter Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss)	(221,409)	(1,135,626)	1,465,659)	1,205,596)	(108,063)
Revenue	5,077,482)	3,716,349)	3,459,329)	3,042,359)	2,443,299)
Profitability Ratio
Net profit margin¹	-4.36%	-30.56%	42.37%	39.63%	-4.42%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss)	(450,183)	(71,230)	343,148)	403,876)	(114,478)
Revenue	5,077,482)	3,716,349)	3,459,329)	3,042,359)	2,443,299)
Profitability Ratio
Adjusted net profit margin²	-8.87%	-1.92%	9.92%	13.28%	-4.69%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ Net profit margin = 100 × Net income (loss) ÷ Revenue
= 100 × -221,409 ÷ 5,077,482 = -4.36%

² Adjusted net profit margin = 100 × Adjusted net income (loss) ÷ Revenue
= 100 × -450,183 ÷ 5,077,482 = -8.87%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Twitter Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Revenue	5,077,482)	3,716,349)	3,459,329)	3,042,359)	2,443,299)
Total assets	14,059,516)	13,379,090)	12,703,389)	10,162,572)	7,412,477)
Activity Ratio
Total asset turnover¹	0.36	0.28	0.27	0.30	0.33
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Revenue	5,077,482)	3,716,349)	3,459,329)	3,042,359)	2,443,299)
Adjusted total assets	12,910,943)	12,582,764)	10,795,303)	9,354,113)	7,402,022)
Activity Ratio
Adjusted total asset turnover²	0.39	0.30	0.32	0.33	0.33

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 5,077,482 ÷ 14,059,516 = 0.36

² Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 5,077,482 ÷ 12,910,943 = 0.39

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Twitter Inc. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Total assets	14,059,516)	13,379,090)	12,703,389)	10,162,572)	7,412,477)
Stockholders’ equity	7,307,199)	7,970,082)	8,704,386)	6,805,594)	5,047,218)
Solvency Ratio
Financial leverage¹	1.92	1.68	1.46	1.49	1.47
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets	12,910,943)	12,582,764)	10,795,303)	9,354,113)	7,402,022)
Adjusted stockholders’ equity	6,159,598)	7,174,786)	6,797,126)	5,997,135)	5,037,001)
Solvency Ratio
Adjusted financial leverage²	2.10	1.75	1.59	1.56	1.47

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 14,059,516 ÷ 7,307,199 = 1.92

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 12,910,943 ÷ 6,159,598 = 2.10

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Twitter Inc. adjusted financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss)	(221,409)	(1,135,626)	1,465,659)	1,205,596)	(108,063)
Stockholders’ equity	7,307,199)	7,970,082)	8,704,386)	6,805,594)	5,047,218)
Profitability Ratio
ROE¹	-3.03%	-14.25%	16.84%	17.71%	-2.14%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss)	(450,183)	(71,230)	343,148)	403,876)	(114,478)
Adjusted stockholders’ equity	6,159,598)	7,174,786)	6,797,126)	5,997,135)	5,037,001)
Profitability Ratio
Adjusted ROE²	-7.31%	-0.99%	5.05%	6.73%	-2.27%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × -221,409 ÷ 7,307,199 = -3.03%

² Adjusted ROE = 100 × Adjusted net income (loss) ÷ Adjusted stockholders’ equity
= 100 × -450,183 ÷ 6,159,598 = -7.31%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Twitter Inc. adjusted ROE deteriorated from 2019 to 2020 and from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss)	(221,409)	(1,135,626)	1,465,659)	1,205,596)	(108,063)
Total assets	14,059,516)	13,379,090)	12,703,389)	10,162,572)	7,412,477)
Profitability Ratio
ROA¹	-1.57%	-8.49%	11.54%	11.86%	-1.46%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss)	(450,183)	(71,230)	343,148)	403,876)	(114,478)
Adjusted total assets	12,910,943)	12,582,764)	10,795,303)	9,354,113)	7,402,022)
Profitability Ratio
Adjusted ROA²	-3.49%	-0.57%	3.18%	4.32%	-1.55%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ ROA = 100 × Net income (loss) ÷ Total assets
= 100 × -221,409 ÷ 14,059,516 = -1.57%

² Adjusted ROA = 100 × Adjusted net income (loss) ÷ Adjusted total assets
= 100 × -450,183 ÷ 12,910,943 = -3.49%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Twitter Inc. adjusted ROA deteriorated from 2019 to 2020 and from 2020 to 2021.

Twitter Inc. (NYSE:TWTR)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Twitter Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Twitter Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)