Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2019 |
Income Tax Disclosure [Abstract] |
|
Summary of Components of Income Taxes From Continuing Operations |
The components of pretax income from continuing operations, generally based on the jurisdiction of the legal entity, were as follows: | | | | | | | | | | | | | | | | | | | Year Ended December 31, | | | | | | 2019 | | 2018 | | 2017 | Components of pre-tax income: | | | | | | Domestic | $ | 30,960 | | | $ | 190,291 | | | $ | 199,685 | | Foreign | 168,678 | | | 208,122 | | | 177,928 | | | $ | 199,638 | | | $ | 398,413 | | | $ | 377,613 | |
|
Summary of Provision for Income Tax Relating to Continuing Operations |
The provision for income taxes relating to continuing operations consists of the following: | | | | | | | | | | | | | | | | | | | Year Ended December 31, | | | | | | 2019 | | 2018 | | 2017 | Current portion: | | | | | | Federal | $ | 4,488 | | | $ | (49,518) | | | $ | 50,829 | | State and Local | 3,781 | | | 4,168 | | | 2,388 | | Non U.S. | 49,982 | | | 59,743 | | | 26,060 | | Total current | 58,251 | | | 14,393 | | | 79,277 | | Deferred portion: | | | | | | Federal | (14,215) | | | 55,502 | | | 47,372 | | State and Local | (1,692) | | | (4,812) | | | (6,178) | | Non U.S. | (7,018) | | | (7,591) | | | 7,566 | | Total deferred | (22,925) | | | 43,099 | | | 48,760 | | Total provision for income taxes | $ | 35,326 | | | $ | 57,492 | | | $ | 128,037 | |
|
Schedule of Reconciliation of Statutory Income Taxes and Effective Income Taxes Relating to Continuing Operation |
The provision for income taxes relating to continuing operations differs from amounts computed at the statutory federal income tax rate as follows: | | | | | | | | | | | | | | | | | | | Year Ended December 31, | | | | | | 2019 | | 2018 | | 2017 | Income tax provision at statutory federal income tax rate | $ | 41,924 | | | $ | 83,667 | | | $ | 132,165 | | State income taxes, net of federal benefit | 2,223 | | | (42) | | | (1,727) | | Impact of non U.S. taxing jurisdictions, net | 14,078 | | | 5,591 | | | (13,492) | | | | | | | | Impact of U.S. TCJA(1) | — | | | (26,730) | | | 46,563 | | Employee stock based compensation | 8,380 | | | 3,884 | | | (2,849) | | Research tax credit | (28,593) | | | (9,818) | | | (8,777) | | Tax receivable agreement (TRA)(2) | (536) | | | 1,019 | | | (20,861) | | Other, net | (2,150) | | | (79) | | | (2,985) | | Total provision for income taxes | $ | 35,326 | | | $ | 57,492 | | | $ | 128,037 | |
___________________________ (1)In 2018, amount includes SAB 118 adjustments for deferred taxes and foreign tax effects. In 2017, amount includes $48 million of transition tax expense, and the remainder is the net benefit on cumulative deferred taxes. (2)Amount includes adjustments to the TRA, which are not taxable.
|
Summary of Deferred Tax Assets and Liabilities |
The components of our deferred tax assets and liabilities are as follows: | | | | | | | | | | | | | As of December 31, | | | | 2019 | | 2018 | Deferred tax assets: | | | | Accrued expenses | $ | 7,547 | | | $ | 8,638 | | Employee benefits other than pension | 23,272 | | | 34,147 | | Lease liabilities | 9,415 | | | — | | Deferred revenue | 30,715 | | | 22,351 | | Pension obligations | 27,407 | | | 26,821 | | Tax loss carryforwards | 54,556 | | | 70,340 | | Incentive consideration | 6,722 | | | 9,456 | | Tax credit carryforwards | 16,136 | | | 31,467 | | Suspended loss | 14,635 | | | 14,474 | | Other | 5,916 | | | 8,008 | | Total deferred tax assets | 196,321 | | | 225,702 | | Deferred tax liabilities: | | | | Right of use assets | (9,261) | | | — | | Depreciation and amortization | (7,059) | | | (13,298) | | Software developed for internal use | (66,918) | | | (103,631) | | Intangible assets | (120,528) | | | (122,921) | | Unrealized gains and losses | (18,778) | | | (21,840) | | Non U.S. operations | (13,789) | | | (9,355) | | Investment in partnership | (7,306) | | | (6,794) | | Total deferred tax liabilities | (243,639) | | | (277,839) | | Valuation allowance | (38,272) | | | (59,294) | | Net deferred tax (liability) | $ | (85,590) | | | $ | (111,431) | |
|
Summary of Reconciliation of Unrecognized Tax Benefit |
A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows: | | | | | | | | | | | | | | | | | | | Year Ended December 31, | | | | | | 2019 | | 2018 | | 2017 | Balance at beginning of year | $ | 70,327 | | | $ | 74,388 | | | $ | 49,331 | | Additions for tax positions taken in the current year | 5,149 | | | 4,450 | | | 5,279 | | Additions for tax positions of prior years | 12,679 | | | 2,612 | | | 21,669 | | Additions for tax positions from acquisitions | 1,294 | | | — | | | — | | Reductions for tax positions of prior years | (19,611) | | | (5,831) | | | — | | Reductions for tax positions of expired statute of limitations | (1,192) | | | (3,143) | | | (1,891) | | Settlements | (4,001) | | | (2,149) | | | — | | Balance at end of year | $ | 64,645 | | | $ | 70,327 | | | $ | 74,388 | |
|
Summary of Income Tax Examinations |
The following table summarizes, by major tax jurisdiction, our tax years that remain subject to examination by taxing authorities: | | | | | | Tax Jurisdiction | Years Subject to Examination | United Kingdom | 2013 - forward | Singapore | 2015 - forward | Texas | 2015 - forward | Uruguay | 2014 - forward | U.S. Federal | 2014 - forward |
|