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INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Income tax expense (benefit)
The income tax expense (benefit) for the year ended December 31, 2017 is as follows (in thousands):
 
 
Current
 
Deferred
 
Total
International
$
755,836

 
$
(10,361
)
 
$
745,475

U.S. Federal
1,327,663

 
(57,350
)
 
1,270,313

U.S. State
6,523

 
35,246

 
41,769

Total
$
2,090,022

 
$
(32,465
)
 
$
2,057,557

 
The income tax expense (benefit) for the year ended December 31, 2016 is as follows (in thousands):
 
 
Current
 
Deferred
 
Total
International
$
627,718

 
$
(14,359
)
 
$
613,359

U.S. Federal
63,613

 
(32,405
)
 
31,208

U.S. State
(1,175
)
 
(65,141
)
 
(66,316
)
Total
$
690,156

 
$
(111,905
)
 
$
578,251

 
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

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, 2017 and 2016 are as follows (in thousands):
 
 
2017
 
2016
Deferred tax assets/(liabilities):
 

 
 

Net operating loss carryforward — U.S.
$
70,750

 
$
15,977

Net operating loss carryforward — International
27,831

 
18,371

Accrued expenses
57,524

 
72,631

Stock-based compensation and other stock based payments
48,104

 
60,937

Euro denominated debt
57,740

 

Fixed assets
8,600

 

Subtotal - deferred tax assets
270,549

 
167,916

 
 
 
 
Discount on convertible notes
(32,810
)
 
(77,845
)
Intangible assets and other
(517,353
)
 
(740,329
)
Euro denominated debt

 
(117,737
)
Fixed assets

 
(2,245
)
State income tax on accumulated unremitted international earnings
(36,616
)
 

Unrealized gain on investments
(70,408
)
 

Other
(9,480
)
 
(3,958
)
Subtotal - deferred tax liabilities
(666,667
)
 
(942,114
)
Valuation allowance on deferred tax assets
(43,694
)
 
(24,475
)
Net deferred tax liabilities (1)
$
(439,812
)
 
$
(798,673
)
  
(1)  Includes deferred tax assets of $41.3 million and $23.7 million as of December 31, 2017 and 2016, respectively, reported in "Other assets" in the Consolidated Balance Sheets.
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):
 
 
2017
 
2016
 
2015
Income tax expense at federal statutory rate
$
1,539,413

 
$
949,633

 
$
1,094,912

Adjustment due to:
 

 
 

 
 

Foreign rate differential
(458,252
)
 
(377,542
)
 
(316,078
)
Innovation Box Tax benefit
(397,074
)
 
(324,633
)
 
(260,193
)
Impairment of goodwill and cost-method investment

 
343,484

 

Tax Act - Remeasurement of deferred tax balances
(216,572
)
 

 

Tax Act - U.S. transition tax and other transition impacts
1,562,532

 

 

Other
27,510

 
(12,691
)
 
58,319

Income tax expense
$
2,057,557

 
$
578,251

 
$
576,960

Reconciliation of unrecognized tax benefits
The following is a reconciliation of the total beginning and ending amount of unrecognized tax benefits (in thousands): 
 
2017
 
2016
 
2015
Unrecognized tax benefit — January 1
$
32,715

 
$
42,594

 
$
52,356

Gross increases — tax positions in current period
5,119

 
2,468

 
3,411

Gross increases — tax positions in prior periods
5,822

 
859

 
4,305

Gross decreases — tax positions in prior periods
(9,202
)
 
(217
)
 
(10,365
)
Reduction due to lapse in statute of limitations
(1,009
)
 
(9,077
)
 
(7,113
)
Reduction due to settlements during the current period
(1,050
)
 
(3,912
)
 

Unrecognized tax benefit — December 31
$
32,395

 
$
32,715

 
$
42,594