Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

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:


	2015		2014		2013
United States	$	304,743	$	233,933	$	205,033
Foreign		231,261		279,010		198,536

Total	$	536,004	$	512,943	$	403,569

Components of Income Taxes

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


	2015			2014			2013
Current:
Federal	$	82,926		$	39,168		$	72,909
State		8,051			8,208			7,369
Foreign		51,970			55,144			46,026

Total current		142,947			102,520			126,304
Deferred:
Federal		36,723			41,814			(1,287	)
State		1,525			(596	)		130
Foreign		(7,622	)		498			(6,079	)

Total deferred		30,626			41,716			(7,236	)

Total provision	$	173,573		$	144,236		$	119,068

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):


	2015					2014					2013
Computed “expected” tax expense	$	187,601		35.0	%	$	179,530		35.0	%	$	141,249		35.0	%
Changes resulting from:
Change in valuation allowance		20,243		3.8			(53	)	—			(222	)	—
Foreign income tax differential		(23,718	)	(4.4	)		(24,972	)	(4.9	)		(16,021	)	(4.0	)
State taxes net of federal benefits		6,711		1.2			4,492		0.9			4,744		1.2
Foreign-sourced nontaxable income		(10,573	)	(2.0	)		(8,128	)	(1.6	)		(11,967	)	(3.0	)
IRC Section 199 deduction		(10,221	)	(1.9	)		—		—			—		—
Other		3,530		0.7			(6,633	)	(1.3	)		1,285		0.3

Provision for income taxes	$	173,573		32.4	%	$	144,236		28.1	%	$	119,068		29.5	%

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):


	2015			2014
Deferred tax assets:
Accounts receivable, principally due to the allowance for doubtful accounts	$	6,277		$	7,434
Accrued expenses not currently deductible for tax		5,797			5,610
Stock based compensation		35,066			16,405
Income tax credits		3,830			3,830
Net operating loss carry forwards		39,970			127,487
Equity investment		38,760			3,262
Accrued escheat		13,497			12,058
Fixed assets, intangibles and other		14,191			12,868

Deferred tax assets before valuation allowance		157,388			188,954
Valuation allowance		(62,605	)		(27,082	)

Deferred tax assets, net		94,783			161,872

Deferred tax liabilities:
Intangibles—including goodwill(1)		(732,017	)		(818,680	)
Basis difference in investment in foreign subsidiaries		(47,737	)		(23,128	)
Property and equipment, principally due to differences between book and tax depreciation, and other		(19,544	)		(18,552	)

Deferred tax liabilities(1)		(799,298	)		(860,360	)

Net deferred tax liabilities(1)	$	(704,515	)	$	(698,488	)

(1)	Deferred tax liabilities related to intangibles—including goodwill at December 31, 2014 have been adjusted due to revision of financial statements as discussed in the summary of significant accounting policies footnote.

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):


	2015			2014
Current deferred tax assets and liabilities:
Current deferred tax assets	$	9,585		$	101,451
Current deferred tax liabilities		(672	)		—

Net current deferred taxes		8,913			101,451

Long term deferred tax assets and liabilities:
Long term deferred tax assets		1,639			60,421
Long term deferred tax liabilities(1)		(715,067	)		(860,360	)

Net long term deferred taxes(1)		(713,428	)		(799,939	)

Net deferred tax liabilities(1)	$	(704,515	)	$	(698,488	)

(1)	Long term deferred tax liabilities at December 31, 2014 have been adjusted due to revision of financial statements as discussed in the summary of significant accounting policies footnote.

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, 2015, 2014 and 2013 is as follows (in thousands):


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
Additions based on tax provisions related to the current year		9,079
Additions based on tax provisions related to the prior year		477
Deductions based on settlement/expiration of prior year tax positions		(6,363	)

Unrecognized tax benefits at December 31, 2015	$	21,834