INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

The income tax expense (benefit) for the year ended December 31, 2015 is as follows (in thousands):



	Current		Deferred			Total
International	$	526,052	$	(17,789	)	$	508,263
U.S. Federal	88,237		(68,696		)	19,541
U.S. State	24,006		25,150			49,156
Total	$	638,295	$	(61,335	)	$	576,960

The income tax expense (benefit) for the year ended December 31, 2014 is as follows (in thousands):



	Current		Deferred			Total
International	$	496,719	$	(10,613	)	$	486,106
U.S. Federal	10,316		47,847			58,163
U.S. State	28,953		(5,527		)	23,426
Total	$	535,988	$	31,707		$	567,695

The income tax expense (benefit) for the year ended December 31, 2013 is as follows (in thousands):



	Current		Deferred			Total
International	$	396,162	$	(16,314	)	$	379,848
U.S. Federal	5,250		11,454			16,704
U.S. State	13,431		(6,244		)	7,187
Total	$	414,843	$	(11,104	)	$	403,739

Tax effects of temporary differences that give rise to significant portions of deterred tax assets and liabilities

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities at December 31, 2015 and 2014 are as follows (in thousands):



	2015			2014
Deferred tax assets/(liabilities):
Net operating loss carryforward — U.S.	$	59,220		$	176,786
Net operating loss carryforward — International	18,153			22,353
Accrued expenses	61,703			41,117
Stock-based compensation and other stock based payments	77,761			54,935
Other	8,001			24,456
Subtotal	224,838			319,647

Discount on convertible notes	(112,886		)	(141,193		)
Intangible assets and other	(822,685		)	(856,807		)
Euro denominated debt	(92,230		)	(35,441		)
Fixed assets	(3,658		)	(3,409		)
Less valuation allowance on deferred tax assets	(64,845		)	(161,997		)
Net deferred tax liabilities⁽¹⁾	$	(871,466	)	$	(879,200	)

Schedule of effective income tax rate reconciliation

The effective income tax rate of the Company is different from the amount computed using the expected U.S. statutory federal rate of 35% as a result of the following items (in thousands):



	2015			2014			2013
Income tax expense at federal statutory rate	$	1,094,912		$	1,046,307		$	803,788
Adjustment due to:
Foreign rate differential	(316,078		)	(289,692		)	(226,894		)
Innovation Box Tax benefit	(260,193		)	(233,545		)	(177,195		)
Other	58,319			44,625			4,040
Income tax expense	$	576,960		$	567,695		$	403,739

Reconciliation of unrecognized tax benefits

The following is a reconciliation of the total amount of unrecognized tax benefits (in thousands):



	2015			2014			2013
Unrecognized tax benefit — January 1	$	52,356		$	22,104		$	7,343
Gross increases — tax positions in current period	3,411			9,305			8,597
Gross increases — tax positions in prior periods	4,305			6,569			3,507
Increase acquired in business combination	—			17,767			7,089
Gross decreases — tax positions in prior periods	(10,365		)	(2,164		)	(495		)
Reduction due to lapse in statute of limitations	(7,113		)	(346		)	(3,937		)
Reduction due to settlements during the current period	—			(879		)	—
Unrecognized tax benefit — December 31	$	42,594		$	52,356		$	22,104