Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

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):

	2020		2019		2018
United States	$	457,090	$	505,818	$	622,214
Foreign	425,435		572,001		472,911
Total	$	882,525	$	1,077,819	$	1,095,125

Components of Income Taxes

The provision for income taxes for the years ended December 31 consists of the following (in thousands): 

	2020		2019		2018
Current:
Federal	$	71,123	$	50,145	$	165,303
State	19,597		10,285		26,036
Foreign	71,921		84,433		95,053
Total current	162,641		144,863		286,392
Deferred:
Federal	143		(10,479)		(19,688)
State	(4,323)		3,745		8,727
Foreign	19,848		44,617		8,211
Total deferred	15,668		37,883		(2,750)
Total provision	$	178,309	$	182,746	$	283,642

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 2020, 2019, and 2018, respectively, to income before income taxes for the years ended December 31, 2020, 2019 and 2018 due to the following (in thousands): 

	2020				2019				2018
Computed “expected” tax expense	$	185,330	21.0	%	$	226,342	21.0	%	$	229,976	21.0	%
Changes resulting from:
Change in valuation allowance	25,932		2.9		(28,614)		(2.7)		25,193		2.8
Foreign income tax differential	(20,852)		(2.3)		(15,816)		(1.4)		9,921		0.9
State taxes net of federal benefits	7,489		0.8		12,482		1.2		20,480		1.9
Increase in tax expense due to uncertain tax positions	14,848		1.7		—		—		—		—
Foreign-sourced nontaxable income	—		—		—		—		(28,861)		(2.6)
Foreign withholding tax	15,630		1.8		20,360		1.9		20,569		1.9
Excess tax benefits related to stock-based compensation	(58,942)		(6.7)		(38,156)		(3.5)		(19,255)		(1.8)
Revaluation of capital loss deferred tax asset	—		—		(24,279)		(2.3)		—		—
Impact of the Tax Act:
Foreign tax credit- one-time transition tax	—		—		—		—		17,385		1.6
Deferred tax effects	—		—		—		—		7,128		0.1
Sub-part F Income/GILTI	34,990		4.0		49,859		4.6		40,200		3.7
Foreign tax credits	(30,497)		(3.5)		(38,657)		(3.6)		(52,095)		(4.8)
Other	4,381		0.5		19,225		1.8		13,001		1.2
Provision for income taxes	$	178,309	20.2	%	$	182,746	17.0	%	$	283,642	25.9	%

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):

	2020		2019
Deferred tax assets:
Accounts receivable, principally due to the allowance for doubtful accounts	$	10,515	$	9,586
Accrued expenses not currently deductible for tax	3,442		2,305
Lease deferral	23,506		24,713
Interest rate swap	21,792		13,781
Stock based compensation	36,015		39,779
Income tax credits	51,264		35,845
Net operating loss carry forwards	83,372		67,108
Accrued escheat	3,567		3,098
Other	11,711		3,522
Deferred tax assets before valuation allowance	245,184		199,737
Valuation allowance	(90,340)		(64,482)
Deferred tax assets, net	154,844		135,255
Deferred tax liabilities:
Intangibles—including goodwill	(481,388)		(499,525)
Basis difference in investment in subsidiaries	(42,313)		(42,314)
Lease deferral	(19,977)		(21,810)
Accrued Expense Liability	(513)		(4,023)
Prepaid expenses	(2,126)		(2,075)
Withholding taxes	(30,488)		(30,366)
Property and equipment and other	(71,342)		(52,467)
Deferred tax liabilities	(648,147)		(652,580)
Net deferred tax liabilities	$	(493,303)	$	(517,325)

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): 

	2020		2019
Long term deferred tax assets and liabilities:
Long term deferred tax assets	$	4,851	$	2,655
Long term deferred tax liabilities	(498,154)		(519,980)
Net deferred tax liabilities	$	(493,303)	$	(517,325)

Summary of Valuation Allowance

The valuation allowance for deferred tax assets changed during 2020 as follows (in thousands):

Balance at December 31, 2017 (after impact of tax reform)	$	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
Reductions based on changes in deferred tax assets	(28,601)
Additions based on changes in deferred tax assets	2,717
Balance at December 31, 2019	64,482
Additions based on changes in deferred tax assets	25,932
Reductions based on changes in deferred tax assets	(74)
Balance at December 31, 2020	$	90,340

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits excluding interest and penalties for the years ended December 31, 2020, 2019 and 2018 is as follows (in thousands):

Unrecognized tax benefits at December 31, 2017	$	31,558
Additions based on tax provisions related to the current year	3,755
Deductions based on settlement/expiration of prior year tax positions	(4,161)
Additions based on tax provisions related to the prior year	3,000
Unrecognized tax benefits at December 31, 2018	34,152
Additions based on tax provisions related to the current year	4,284
Additions based on tax provisions related to the prior year	11,679
Deductions based on settlement/expiration of prior year tax positions	(7,342)
Unrecognized tax benefits at December 31, 2019	42,773
Additions based on tax provisions related to the current year	6,412
Additions based on tax provisions related to the prior year	13,532
Deduction of cumulative interest and penalties	(12,508)
Deductions based on expiration of prior year tax positions	(14,460)
Unrecognized tax benefits at December 31, 2020	$	35,749