Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Components of Income Tax Expense Included in Consolidated Statements of Income

The components of income tax expense included in the consolidated statements of income were as follows:

	Years Ended December 31,
(in thousands)	2011			2010			2009
Current income tax expense:
Federal	$	83,518			98,802		$	115,301
State		4,666			4,221			4,311
Foreign		12,922			8,682			6,185
Total current income tax expense		101,106			111,705			125,797
Deferred income tax expense (benefit):
Federal		3,126			(2,970	)		(4,210	)
State		61			(643	)		947
Foreign		(1,696	)		(2,004	)		(684	)
Total deferred income tax expense (benefit)		1,491			(5,617	)		(3,947	)
Total income tax expense	$	102,597			106,088		$	121,850

Components of Income Tax Before Income Tax

	Years Ended December 31,
(in thousands)	2011		2010		2009
Components of income before income tax expense :
Domestic	$	296,475		282,492	$	300,388
Foreign		20,076		25,320		40,197
Total income before income tax expense	$	316,551		307,812	$	340,585

Income Tax Expense Differed from Amounts Computed by Applying Statutory U.S. Federal Income Tax Rate to Income before Income Taxes, Noncontrolling Interest and Equity in Income of Equity Investments

Income tax expense differed from the amounts computed by applying the statutory U.S. federal income tax rate of 35% to income before income taxes, noncontrolling interest and equity in income of equity investments as a result of the following:

	Years Ended December 31,
(in thousands)	2011			2010			2009
Computed “expected” income tax expense	$	110,793			107,734			119,205
Increase (decrease) in income tax expense resulting from:
International tax rate differential		1,831			(4,376	)		1,075
State income tax expense (benefit), net of federal income tax effect		3,164			2,326			3,418
Increase (decrease) in valuation allowance		3,773			2,564			(6,159	)
Tax credits		(9,044	)		(2,824	)		(4,299	)
Federal income tax expense resulting from ASC 740 Election		—			—			9,844
Deduction for domestic production activities		(5,524	)		—			—
Permanent differences and other, net		(2,396	)		664			(1,234	)
Total income tax expense	$	102,597			106,088			121,850

Temporary Differences between Financial Statement Carrying Amounts and Tax Bases of Assets and Liabilities that Give Rise to Significant Portions of Net Deferred Tax Liability

Temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities that give rise to significant portions of the net deferred tax liability at December 31, 2011 and 2010 relate to the following:

	At December 31,
(in thousands)	2011			2010
Deferred income tax assets:
Net operating loss and income tax credit carryforwards	$	25,937			19,884
Allowances for doubtful accounts and billing adjustments		1,113			1,304
Deferred revenue		19,031			16,244
Purchase accounting adjustments		15,889			—
Other, net		37,123			33,980
Total deferred income tax assets		99,093			71,412
Less valuation allowance for deferred income tax assets		(19,207	)		(15,434	)
Net deferred income tax assets		79,886			55,978
Deferred income tax liabilities:
Excess tax over financial statement depreciation		(42,351	)		(35,878	)
Computer software development costs		(40,339	)		(38,797	)
Purchase accounting adjustments		—			(1,438	)
Foreign currency translation		(6,432	)		(3,771	)
Other, net		(6,712	)		(4,847	)
Total deferred income tax liabilities		(95,834	)		(84,731	)
Net deferred income tax liabilities	$	(15,948	)		(28,753	)
Total net deferred tax assets (liabilities):
Current	$	12,872			11,090
Noncurrent		(28,820	)		(39,843	)
Net deferred income tax liability	$	(15,948	)		(28,753	)

Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows ⁽¹⁾:

(in millions)	Year Ended December 31, 2011
Beginning balance	$	4.5
Current activity:
Additions based on tax positions related to current year		1.4
Additions for tax positions of prior years		1.4
Reductions for tax positions of prior years		(1.6	)
Settlements		—
Net, current activity		1.2
Ending balance	$	5.7

(1) Unrecognized state tax benefits are not adjusted for the federal tax impact.