Income Taxes

Income before income taxes includes the following components:



	Year Ended December 31,
(in thousands)	2015		2014		2013
Domestic	$	325,097	$	291,042	$	272,569
Foreign	31,668		57,097		49,920
Total	$	356,765	$	348,139	$	322,489

The provision for income taxes is composed of the following:



	Year Ended December 31,
(in thousands)	2015			2014			2013
Current:
Federal	$	93,853		$	80,620		$	69,268
State	7,733			7,192			7,197
Foreign	17,854			24,495			24,722
Deferred:
Federal	(14,472		)	(18,536		)	(23,438		)
State	(1,987		)	(1,915		)	(2,187		)
Foreign	1,263			1,593			1,600
Total	$	104,244		$	93,449		$	77,162

The reconciliation of the U.S. federal statutory tax rate to the consolidated effective tax rate is as follows:



	Year Ended December 31,
	2015		2014		2013
Federal statutory tax rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	1.1		1.2		1.1
Stock-based compensation	—		0.6		0.9
Net benefit of unrepatriated earnings	—		(0.3	)	(0.9	)
Uncertain tax positions	(0.4	)	(0.9	)	(3.7	)
Research and development credits	(1.1	)	(1.1	)	(2.0	)
Benefit from restructuring activities	(2.7	)	(4.1	)	(2.8	)
Domestic production activity benefit	(3.1	)	(3.5	)	(3.3	)
Other	0.4		(0.1	)	(0.4	)
	29.2	%	26.8	%	23.9	%

In general, it is the practice and intention of the Company to repatriate previously taxed earnings and to reinvest all other earnings of its non-U.S. subsidiaries. The Company has not made a provision for U.S. taxes on $202.9 million, representing the excess of the amount for financial reporting over the tax bases of investments in foreign subsidiaries that are essentially permanent in duration. Generally, such amounts become subject to U.S. taxation upon the remittance of dividends and under certain other circumstances. The residual U.S. tax cost associated with this difference is estimated to be $20.9 million.

The components of deferred tax assets and liabilities are as follows:



	December 31,
(in thousands)	2015			2014
Deferred tax assets:
Net operating loss carryforwards	$	40,939		$	42,060
Stock-based compensation	23,258			23,331
Employee benefits	17,044			20,034
Uncertain tax positions	10,233			8,545
Deferred revenue	8,603			6,533
Research and development credits	3,562			4,349
Allowance for doubtful accounts	1,888			1,806
Other	3,240			2,877
Valuation allowance	(603		)	(130		)
	108,164			109,405
Deferred tax liabilities:
Other intangible assets	(73,933		)	(92,703		)
Property and equipment	(3,426		)	(4,652		)
	(77,359		)	(97,355		)
Net deferred tax assets	$	30,805		$	12,050

The Company excluded from the above table a $9.3 million deferred tax asset associated with foreign net operating loss carryforwards and a corresponding $9.3 million valuation allowance generated during the current year in a jurisdiction where the Company determined utilization is remote. The net increase in the gross valuation allowance was $0.7 million. This increase was primarily due to acquired state losses that are not expected to be utilized.

As of December 31, 2015, the Company had federal net operating loss carryforwards of $40.8 million. These losses expire between 2020 - 2034, and are subject to limitations on their utilization. Deferred tax assets of $1.6 million have been recorded for state operating loss carryforwards. These losses expire between 2016 - 2035, and are subject to limitations on their utilization. The Company had total foreign net operating loss carryforwards of $84.0 million, of which $29.4 million are not currently subject to expiration dates. The remainder, $54.6 million, expires between 2019 - 2025. The Company had tax credit carryforwards of $4.7 million, of which $3.0 million are subject to limitations on their utilization. Approximately $0.7 million of these tax credit carryforwards are not currently subject to expiration dates. The remainder, $4.0 million, expires in various years between 2016 - 2035.

In December 2013, the Company received notice from the Internal Revenue Service that the Joint Committee on Taxation took no exception to the Company's tax returns that were filed for 2009 and 2010. An $11.0 million tax benefit was recognized in the Company's 2013 financial results as the Company had effectively settled uncertainty regarding refund claims filed in connection with those returns.

The following is a reconciliation of the total amounts of unrecognized tax benefits:



	Year Ended December 31,
(in thousands)	2015			2014			2013
Unrecognized tax benefit as of January 1	$	16,342		$	19,590		$	37,203
Gross increases—tax positions in prior period	64			488			320
Gross decreases—tax positions in prior period	(850		)	(3,715		)	(18,058		)
Gross increases—tax positions in current period	4,064			2,513			2,036
Reductions due to a lapse of the applicable statute of limitations	(2,808		)	(1,924		)	(1,734		)
Changes due to currency fluctuation	(653		)	(610		)	20
Settlements	(92		)	—			(197		)
Unrecognized tax benefit as of December 31	$	16,067		$	16,342		$	19,590

The Company believes that it is reasonably possible that approximately $0.4 million of uncertain tax positions may be resolved within the next twelve months as a result of settlement with a taxing authority or a lapse of the statute of limitations. Of the total unrecognized tax benefit as of December 31, 2015, $10.5 million would affect the effective tax rate, if recognized.

The Company recognizes interest and penalties related to income taxes as income tax expense. As of December 31, 2015, the Company accrued a liability for penalties of $1.9 million and interest of $2.7 million. As of December 31, 2014, the Company accrued a liability for penalties of $1.6 million and interest of $2.7 million.

The Company is subject to taxation in the U.S. and various states and foreign jurisdictions. In the U.S., the Company's only major tax jurisdiction, the 2013, 2014 and 2015 tax years are open to examination by the Internal Revenue Service.