Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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):

	2021		2020		2019
United States	$	515,041	$	457,090	$	505,818
Foreign	593,767		425,435		572,001
Total	$	1,108,808	$	882,525	$	1,077,819

Components of Income Taxes

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

 

	2021		2020		2019
Current:
Federal	$	118,861	$	71,123	$	50,145
State	31,674		19,597		10,285
Foreign	107,751		71,921		84,433
Total current	258,286		162,641		144,863
Deferred:
Federal	(12,165)		143		(10,479)
State	(4,540)		(4,323)		3,745
Foreign	27,730		19,848		44,617
Total deferred	11,025		15,668		37,883
Total provision	$	269,311	$	178,309	$	182,746

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 2021, 2020, and 2019, respectively, to income before income taxes for the years ended December 31, 2021, 2020 and 2019 due to the following (in thousands):

 

	2021				2020				2019
Computed “expected” tax expense	$	232,850	21.0	%	$	185,330	21.0	%	$	226,342	21.0	%
Changes resulting from:
Change in valuation allowance	1,378		0.1		25,932		2.9		(28,614)		(2.7)
Foreign income tax differential	(10,326)		(0.9)		(20,852)		(2.3)		(15,816)		(1.4)
State taxes net of federal benefits	18,352		1.7		7,489		0.8		12,482		1.2
Increase in tax expense due to uncertain tax positions	8,185		0.7		14,848		1.7		—		—
Foreign withholding tax	9,143		0.8		15,630		1.8		20,360		1.9
Excess tax benefits related to stock-based compensation	(16,304)		(1.5)		(58,942)		(6.7)		(38,156)		(3.5)
Revaluation of capital loss deferred tax asset	—		—		—		—		(24,279)		(2.3)
Sub-part F Income/GILTI	72,449		6.5		34,990		4.0		49,859		4.6
Foreign tax credits	(63,926)		(5.8)		(30,497)		(3.5)		(38,657)		(3.6)
Other	17,510		1.6		4,381		0.5		19,225		1.8
Provision for income taxes	$	269,311	24.3	%	$	178,309	20.2	%	$	182,746	17.0	%

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):

	2021		2020
Deferred tax assets:
Accounts receivable, principally due to the allowance for doubtful accounts	$	13,987	$	10,515
Accrued expenses not currently deductible for tax	6,252		3,442
Lease deferral	20,349		23,506
Interest rate swap	7,621		21,792
Stock based compensation	39,658		36,015
Income tax credits	51,264		51,264
Net operating loss carry forwards	76,988		83,372
Accrued escheat	3,170		3,567
Other	10,078		11,711
Deferred tax assets before valuation allowance	229,367		245,184
Valuation allowance	(94,601)		(90,340)
Deferred tax assets, net	134,766		154,844
Deferred tax liabilities:
Intangibles—including goodwill	(520,349)		(481,388)
Basis difference in investment in subsidiaries	(42,938)		(42,313)
Lease deferral	(17,739)		(19,977)
Accrued Expense Liability	(795)		(513)
Prepaid expenses	(1,788)		(2,126)
Withholding taxes	(38,704)		(30,488)
Property and equipment and other	(76,810)		(71,342)
Deferred tax liabilities	(699,123)		(648,147)
Net deferred tax liabilities	$	(564,357)	$	(493,303)

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):

 

	2021		2020
Long term deferred tax assets and liabilities:
Long term deferred tax assets	$	1,934	$	4,851
Long term deferred tax liabilities	(566,291)		(498,154)
Net deferred tax liabilities	$	(564,357)	$	(493,303)

Summary of Valuation Allowance

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, 2021, 2020 and 2019 is as follows (in thousands):

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
Additions based on tax provisions related to the current year	8,543
Additions based on tax provisions related to the prior year	5,909
Deductions based on settlement of prior year tax positions	(2,122)
Deductions based on expiration of prior year tax positions	(1,058)
Unrecognized tax benefits at December 31, 2021	$	47,021