Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Before The Provision for Income Taxes

Income before the provision for income taxes is attributable to the following jurisdictions (in thousands) for years ended December 31:


	2014		2013		2012
United States	$	233,933	$	205,033	$	186,301
Foreign		279,010		198,536		124,489

Total	$	512,943	$	403,569	$	310,790

Components of Income Taxes

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


	2014			2013			2012
Current:
Federal	$	39,168		$	72,909		$	62,886
State		8,208			7,369			4,551
Foreign		55,144			46,026			29,551

Total current		102,520			126,304			96,988
Deferred:
Federal		41,814			(1,287	)		2,295
State		(596	)		130			417
Foreign		498			(6,079	)		(5,109	)

Total deferred		41,716			(7,236	)		(2,397	)

Total provision	$	144,236		$	119,068		$	94,591

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 35% to income before income taxes for the years ended December 31 due to the following (in thousands):


	2014					2013					2012
Computed “expected” tax expense	$	179,530		35.00	%	$	141,249		35.00	%	$	108,777		35.00	%
Changes resulting from:
Foreign income tax differential		(24,972	)	(4.87	)		(16,021	)	(3.97	)		(11,695	)	(3.76	)
State taxes net of federal benefits		4,492		0.88			4,744		1.18			3,858		1.24
Foreign-sourced nontaxable income		(8,128	)	(1.59	)		(11,967	)	(2.97	)		(8,840	)	(2.84	)
Other		(6,685	)	(1.32	)		1,063		0.26			2,491		0.76

Provision for income taxes	$	144,236		28.10	%	$	119,068		29.50	%	$	94,591		30.40	%

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):


	2014			2013
Deferred tax assets:
Accounts receivable, principally due to the allowance for doubtful accounts	$	7,434		$	4,451
Accrued expenses not currently deductible for tax		5,610			—
Stock based compensation		16,405			12,022
Income tax credit		3,830			1,349
Net operating loss carry forwards		127,487			4,438
Fixed assets		3,483			4,135
Basis Difference In Equity Investment		3,262			—
Accrued Escheat		12,058			—
Other		9,385			541

Deferred tax assets before valuation allowance		188,954			26,936
Valuation allowance		(27,082	)		(1,450	)

Deferred tax assets, net		161,872			25,486

Deferred tax liabilities:
Property and equipment, principally due to differences between book and tax depreciation		(868	)		(4,180	)
Intangibles—including goodwill		(833,910	)		(226,396	)
Basis difference in investment in foreign subsidiaries		(23,128	)		(25,145	)
Other		(17,684	)		(14,519	)

Deferred tax liabilities		(875,590	)		(270,240	)

Net deferred tax liabilities	$	(713,718	)	$	(244,754	)

Summary of Classified Deferred Tax Balances Based on Net Current and Noncurrent Items

The Company’s deferred tax balances are classified in its balance sheets based on net current items and net non-current items as of December 31 as follows (in thousands):


	2014			2013
Current deferred tax assets and liabilities:
Current deferred tax assets	$	101,451		$	4,750
Long term deferred tax assets and liabilities:
Long term deferred tax assets		60,421			20,736
Long term deferred tax liabilities		(875,590	)		(270,240	)

Net long term deferred tax liabilities		(815,169	)		(249,504	)

Net deferred tax liabilities	$	(713,718	)	$	(244,754	)

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits including interest for the years ended December 31, 2014, 2013 and 2012 is as follows (in thousands):


Unrecognized tax benefits at December 31, 2011	$	4,994
Additions based on tax provisions related to the current year		1,870
Additions based on tax provisions related to the prior year		716
Deductions based on settlement/expiration of prior year tax positions		(503	)

Unrecognized tax benefits at December 31, 2012		7,077
Additions based on tax provisions related to the current year		1,337
Additions based on tax provisions related to the prior year		15,249
Deductions based on settlement/expiration of prior year tax positions		(2,062	)

Unrecognized tax benefits at December 31, 2013		21,601
Additions based on tax provisions related to the current year		1,676
Deductions based on settlement/expiration of prior year tax positions		(4,636	)

Unrecognized tax benefits at December 31, 2014	$	18,641