Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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):


	2022		2021		2020
United States	$	506,214	$	515,041	$	457,090
Foreign	769,446		593,767		425,435
Total	$	1,275,660	$	1,108,808	$	882,525

Components of Income Taxes

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


	2022		2021		2020
Current:
Federal	$	166,172	$	118,861	$	71,123
State	34,947		31,674		19,597
Foreign	153,388		107,751		71,921
Total current	354,507		258,286		162,641
Deferred:
Federal	(36,613)		(12,165)		143
State	(6,066)		(4,540)		(4,323)
Foreign	9,505		27,730		19,848
Total deferred	(33,174)		11,025		15,668
Total provision	$	321,333	$	269,311	$	178,309

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 2022, 2021, and 2020, respectively, to income before income taxes for the years ended December 31, 2022, 2021, and 2020 due to the following (in thousands):


	2022				2021				2020
Computed “expected” tax expense	$	267,889	21.0	%	$	232,850	21.0	%	$	185,330	21.0	%
Changes resulting from:
Change in valuation allowance	22,399		1.8		1,378		0.1		25,932		2.9
Foreign income tax differential	566		—		(10,326)		(0.9)		(20,852)		(2.3)
State taxes net of federal benefits	12,745		1.0		18,352		1.7		7,489		0.8
Increase in tax expense due to uncertain tax positions	8,257		0.6		8,185		0.7		14,848		1.7

Foreign withholding tax	13,547		1.1		9,143		0.8		15,630		1.8
Change in indefinite reinvestment - Russia	(9,049)		(0.7)		—		—		—		—



Excess tax benefits related to stock-based compensation	(10,000)		(0.8)		(16,304)		(1.5)		(58,942)		(6.7)






Sub-part F Income/GILTI	79,420		6.2		72,449		6.5		34,990		4.0
Foreign tax credits	(73,974)		(5.8)		(63,926)		(5.8)		(30,497)		(3.5)
Foreign source non-deductible interest	9,462		0.7		10,348		0.9		6,986		0.8
IRC section 162(m) adjustment	8,119		0.6		3,665		0.3		1,393		0.2
Brazil tourism tax benefit	(13,810)		(1.1)		—		—		—		—
Other	5,762		0.5		3,497		0.3		(3,998)		(0.5)
Provision for income taxes	$	321,333	25.2	%	$	269,311	24.3	%	$	178,309	20.2	%

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):


	2022		2021
Deferred tax assets:
Accounts receivable, principally due to the allowance for credit losses	$	19,508	$	13,987
Accrued expenses not currently deductible for tax	7,307		6,252
Lease deferral	18,146		20,349
Interest rate swap	—		7,621
Stock based compensation	41,202		39,658
Income tax credits	62,512		51,264
Net operating loss carry forwards	81,580		76,988
Accrued escheat	3,286		3,170


Other	28,773		10,078
Deferred tax assets before valuation allowance	262,314		229,367
Valuation allowance	(117,379)		(94,601)
Deferred tax assets, net	144,935		134,766
Deferred tax liabilities:
Intangibles—including goodwill	(504,590)		(520,349)
Basis difference in investment in subsidiaries	(42,091)		(42,938)
Interest rate swap	(2,964)		—
Lease deferral	(15,428)		(17,739)
Accrued expense liability	(742)		(795)
Prepaid expenses	(1,713)		(1,788)
Withholding taxes	(31,448)		(38,704)
Property and equipment and other	(72,076)		(76,810)
Deferred tax liabilities	(671,052)		(699,123)
Net deferred tax liabilities	$	(526,117)	$	(564,357)

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):


	2022		2021
Long term deferred tax assets and liabilities:
Long term deferred tax assets	$	1,348	$	1,934
Long term deferred tax liabilities	(527,465)		(566,291)

Net deferred tax liabilities	$	(526,117)	$	(564,357)

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, 2022, 2021, and 2020 is as follows (in thousands):


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 settlement/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
Additions based on tax provisions related to the current year	7,752

Additions based on tax provisions related to the prior year	200


Deductions based on expiration of prior year tax positions	(1,550)

Addition for cumulative federal benefit of state tax deductions	7,281
Change due to OCI	(35)
Unrecognized tax benefits at December 31, 2022	$	60,669