Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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):


	2023		2022		2021
United States	$	322,856	$	506,214	$	515,041
Foreign	1,002,149		769,446		593,767
Total	$	1,325,005	$	1,275,660	$	1,108,808

Components of Income Taxes

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


	2023		2022		2021
Current:
Federal	$	155,647	$	166,172	$	118,861
State	25,614		34,947		31,674
Foreign	208,532		153,388		107,751
Total current	389,793		354,507		258,286
Deferred:
Federal	(46,676)		(36,613)		(12,165)
State	(8,088)		(6,066)		(4,540)
Foreign	8,086		9,505		27,730
Total deferred	(46,678)		(33,174)		11,025
Total provision	$	343,115	$	321,333	$	269,311

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 2023, 2022, and 2021, respectively, to income before income taxes for the years ended December 31, 2023, 2022, and 2021 due to the following (in thousands):


	2023				2022				2021
Computed “expected” tax expense	$	278,251	21.0	%	$	267,889	21.0	%	$	232,850	21.0	%
Changes resulting from:
Change in valuation allowance	22,447		1.7		22,399		1.8		1,378		0.1
Foreign income tax differential	14,949		1.1		566		—		(10,326)		(0.9)
State taxes net of federal benefits	13,857		1.0		12,745		1.0		18,352		1.7
Increase in tax expense due to uncertain tax positions	14,146		1.1		8,257		0.6		8,185		0.7

Foreign withholding tax	24,331		1.8		13,547		1.1		9,143		0.8
Change in indefinite reinvestment - Russia	—		—		(9,049)		(0.7)		—		—



Stock-based compensation	3,960		0.3		(10,000)		(0.8)		(16,304)		(1.5)






Sub-part F Income/GILTI	94,594		7.1		79,420		6.2		72,449		6.5
Foreign tax credits	(98,641)		(7.4)		(73,974)		(5.8)		(63,926)		(5.8)
Foreign source non-deductible interest	9,530		0.7		9,462		0.7		10,348		0.9
IRC section 162(m) adjustment	4,019		0.3		8,119		0.6		3,665		0.3
Brazil tourism tax benefit	(16,311)		(1.2)		(13,810)		(1.1)		—		—
Interest on net equity deduction	(15,051)		(1.1)		—		—		—		—
Other	(6,966)		(0.5)		5,762		0.5		3,497		0.3
Provision for income taxes	$	343,115	25.9	%	$	321,333	25.2	%	$	269,311	24.3	%

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):


	2023		2022
Deferred tax assets:
Accounts receivable, principally due to the allowance for credit losses	$	20,110	$	19,508
Accrued expenses not currently deductible for tax	12,922		7,307
Lease deferral	15,767		18,146
Interest rate swap	11,994		—
Stock-based compensation	47,537		41,202
Income tax credits	84,505		62,512
Net operating loss carry forwards	134,911		81,580
Accrued escheat	3,456		3,286


Other	55,466		28,773
Deferred tax assets before valuation allowance	386,668		262,314
Valuation allowance	(165,982)		(117,379)
Deferred tax assets, net	220,686		144,935
Deferred tax liabilities:
Intangibles—including goodwill	(536,561)		(504,590)
Basis difference in investment in subsidiaries	(43,821)		(42,091)
Interest rate swap	—		(2,964)
Lease deferral	(13,589)		(15,428)
Accrued expense liability	(718)		(742)
Prepaid expenses	(1,805)		(1,713)
Withholding taxes	(26,407)		(31,448)
Property and equipment and other	(66,617)		(72,076)
Deferred tax liabilities	(689,518)		(671,052)
Net deferred tax liabilities	$	(468,832)	$	(526,117)

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):


	2023		2022
Long term deferred tax assets and liabilities:
Long term deferred tax assets	$	1,400	$	1,348
Long term deferred tax liabilities	(470,232)		(527,465)

Net deferred tax liabilities	$	(468,832)	$	(526,117)

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, 2023, 2022, and 2021 is as follows (in thousands):


Unrecognized tax benefits at December 31, 2020	$	35,749
Additions based on tax positions related to the current year	8,543
Additions based on tax positions 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 positions related to the current year	7,752

Additions based on tax positions related to the prior year	200
Deductions based on settlement 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
Additions and deductions based on tax positions related to the current year	8,821

Additions and deductions based on tax positions related to the prior year	(1,913)

Deductions based on settlements of prior year tax positions	(104)
Deductions based on expiration of prior year tax positions	(4,235)


Change due to OCI	(132)
Unrecognized tax benefits at December 31, 2023	$	63,106