XML 55 R39.htm IDEA: XBRL DOCUMENT v3.10.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Income Before The Provision for Income Taxes
Income before the provision for income taxes is attributable to the following jurisdictions for years ended December 31 (in thousands) :
 
 
2018
 
2017
 
2016
United States
 
$
622,214

 
$
524,669

 
$
383,427

Foreign
 
472,911

 
368,921

 
259,492

Total
 
$
1,095,125


$
893,590


$
642,919
Components of Income Taxes
The provision for income taxes for the years ended December 31 consists of the following (in thousands):
 
 
 
2018
 
2017
 
2016
Current:
 
 
 
 
 
 
Federal
 
$
165,303

 
$
303,514

 
$
147,406

State
 
26,036

 
19,234

 
10,725

Foreign
 
95,053

 
78,354

 
61,084

Total current
 
286,392


401,102


219,215

Deferred:
 
 
 
 
 
 
Federal
 
(19,688
)
 
(255,188
)
 
(18,723
)
State
 
8,727

 
276

 
1,608

Foreign
 
8,211

 
7,200

 
(11,566
)
Total deferred
 
(2,750
)

(247,712
)

(28,681
)
Total provision
 
$
283,642


$
153,390


$
190,534
Summary of Provision for Income Taxes and U.S. Federal Tax Rate
The provision for income taxes differs from amounts computed by applying the U.S. federal tax rate of 21% for 2018 and 35%, for 2017 and 2016, respectively, to income before income taxes for the years ended December 31, 2018, 2017 and 2016 due to the following (in thousands): 
 
 
2018
 
2017
 
2016
Computed “expected” tax expense
 
$
229,976

 
21.0
 %
 
$
312,756

 
35.0
 %
 
$
225,022

 
35.0
 %
Changes resulting from:
 
 
 
 
 
 
 
 
 
 
 
 
Change in valuation allowance
 
25,193

 
2.8

 
18,289

 
2.0

 
11,952

 
1.9

Foreign income tax differential
 
9,921

 
0.9

 
(38,695
)
 
(4.3
)
 
(25,533
)
 
(4.0
)
State taxes net of federal benefits
 
20,480

 
1.9

 
12,884

 
1.4

 
9,439

 
1.5

Foreign-sourced nontaxable income
 
(28,861
)
 
(2.6
)
 
(8,836
)
 
(1.0
)
 
(13,659
)
 
(1.2
)
Foreign Withholding Tax
 
20,569

 
1.9

 
9,362

 
1.0

 
5,698

 
—

IRC Section 199 deduction
 
—

 
—

 
(8,844
)
 
(1.0
)
 
(7,731
)
 
(1.2
)
Excess Tax Benefits Related to Stock-Based Compensation
 
(19,255
)
 
(1.8
)
 
(18,058
)
 
(2.0
)
 
(11,974
)
 
(1.9
)
Impact of the Tax Act:
 
 
 
 
 
 
 
 
 
 
 
 
     One-Time Transition Tax
 
—

 
—

 
195,779

 
21.9

 
—

 
—

Foreign Tax Credit - One-Time Transition Tax
 
17,385

 
1.6

 
(113,955
)
 
(12.8
)
 
—

 
—

     Deferred Tax Effects
 
7,128

 
0.1

 
(209,965
)
 
(23.5
)
 
—

 
—

Sub-part F Income/GILTI
 
40,200

 
3.7

 
3,741

 
0.4

 
—

 
—

Foreign Tax Credits
 
(52,095
)
 
(4.8
)
 
—

 
—

 
—

 
—

Other
 
13,001

 
1.2

 
(1,068
)
 
0.1

 
(2,680
)
 
(0.4
)
Provision for income taxes
 
$
283,642

 
25.9
 %
 
$
153,390

 
17.2
 %
 
$
190,534

 
29.7
 %
Summary of Deferred Tax Assets and Liabilities
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31 are as follows (in thousands):
 
 
2018
 
2017
Deferred tax assets:
 
 
 
 
Accounts receivable, principally due to the allowance for doubtful accounts
 
$
8,518

 
$
6,752

Accrued expenses not currently deductible for tax
 
6,734

 
442

Stock based compensation
 
40,081

 
37,274

Income tax credits
 
26,770

 
376

Net operating loss carry forwards
 
53,221

 
41,168

Investments
 
39,062

 
37,804

Accrued escheat
 
3,608

 
4,768

Other
 
4,240

 
12,604

Deferred tax assets before valuation allowance
 
182,234


141,188

Valuation allowance
 
(90,366
)
 
(59,349
)
Deferred tax assets, net
 
91,868


81,839

Deferred tax liabilities:
 
 
 
 
Intangibles—including goodwill
 
(483,361
)
 
(508,958
)
Basis difference in investment in foreign subsidiaries
 
(38,200
)
 
(39,287
)
Property and equipment, prepaid expenses and other
 
(59,101
)
 
(50,705
)
Deferred tax liabilities
 
(580,662
)

(598,950
)
Net deferred tax liabilities
 
$
(488,794
)

$
(517,111
)
Deferred Tax Balance Classification in Balance Sheet
The Company’s deferred tax balances are classified in its balance sheets as of December 31 as follows (in thousands):
 
 
 
2018
 
2017
Long term deferred tax assets and liabilities:
 
 
 
 
Long term deferred tax assets
 
$
3,152

 
$
1,801

Long term deferred tax liabilities
 
(491,946
)
 
(518,912
)
Net deferred tax liabilities
 
$
(488,794
)

$
(517,111
)
Summary of Valuation Allowance
The valuation allowance for deferred tax assets changed during 2018 as follows (in thousands):
Balance at December 31, 2015
 
$
62,605

Additions
 
13,790

Balance at December 31, 2016
 
76,395

Additions
 
5,332

Reduction in valuation allowance due to rate change from Tax Act
 
(22,378
)
Balance at December 31, 2017
 
59,349

Additions based on changes in deferred tax assets
 
25,193

Increase in valuation allowance due to rate change from Tax Act
 
5,824

Balance at December 31, 2018
 
$
90,366
Reconciliation of Unrecognized Tax Benefits
A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits including interest and penalties for the years ended December 31, 2018, 2017 and 2016 is as follows (in thousands): 
Unrecognized tax benefits at December 31, 2015
 
$
21,834

Additions based on tax provisions related to the current year
 
3,332

Additions based on tax provisions related to the prior year
 
2,496

Deductions based on settlement/expiration of prior year tax positions
 
(1,507
)
Unrecognized tax benefits at December 31, 2016
 
26,155

Additions based on tax provisions related to the current year
 
4,143

Additions for tax positions due to acquisitions
 
9,208

Additions based on tax provisions related to the prior year
 
1,171

Deductions based on settlement/expiration of prior year tax positions
 
(9,119
)
Unrecognized tax benefits at December 31, 2017
 
31,558

Additions based on tax provisions related to the current year
 
3,755

Additions based on tax provisions related to the prior year
 
3,000

Deductions based on settlement/expiration of prior year tax positions
 
(4,161
)
Unrecognized tax benefits at December 31, 2018
 
$
34,152