Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

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)	2012			2011			2010
Current income tax expense:
Federal	$	98,153			83,518			98,802
State		2,572			4,666			4,221
Foreign		14,092			12,922			8,682
Total current income tax expense		114,817			101,106			111,705
Deferred income tax expense (benefit):
Federal		1,395			3,126			(2,970	)
State		411			61			(643	)
Foreign		(1,521	)		(1,696	)		(2,004	)
Total deferred income tax expense (benefit)		285			1,491			(5,617	)
Total income tax expense	$	115,102			102,597			106,088

Components of Income Tax Before Income Tax

	Years Ended December 31,
(in thousands)	2012		2011		2010
Components of income before income tax expense :
Domestic	$	320,581		279,416		286,490
Foreign		34,273		37,135		21,322
Total income before income tax expense	$	354,854		316,551		307,812

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)	2012			2011			2010
Computed “expected” income tax expense	$	124,199			110,793			107,734
Increase (decrease) in income tax expense resulting from:
International tax rate differential		2,781			1,831			(4,376	)
State income tax expense (benefit), net of federal income tax effect		2,143			3,164			2,326
Increase in valuation allowance		193			3,773			2,564
Tax credits		(3,762	)		(9,044	)		(2,824	)
Deduction for domestic production activities		(5,727	)		(5,524	)		—
Permanent differences and other, net		(4,725	)		(2,396	)		664
Total income tax expense	$	115,102			102,597			106,088

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, 2012 and 2011 relate to the following:

	At December 31,
(in thousands)	2012			2011
Deferred income tax assets:
Net operating loss and income tax credit carryforwards	$	24,405			25,937
Allowances for doubtful accounts and billing adjustments		644			1,113
Deferred revenue		18,645			19,031
Purchase accounting adjustments		—			15,889
Other, net		41,348			37,123
Total deferred income tax assets		85,042			99,093
Less valuation allowance for deferred income tax assets		(19,400	)		(19,207	)
Net deferred income tax assets		65,642			79,886
Deferred income tax liabilities:
Excess tax over financial statement depreciation		(36,682	)		(42,351	)
Computer software development costs		(39,637	)		(40,339	)
Purchase accounting adjustments		(4,514	)		—
Foreign currency translation		(8,574	)		(6,432	)
Other, net		(9,150	)		(6,712	)
Total deferred income tax liabilities		(98,557	)		(95,834	)
Net deferred income tax liabilities	$	(32,915	)		(15,948	)
Total net deferred tax assets (liabilities):
Current	$	9,825			12,872
Noncurrent		(42,740	)		(28,820	)
Net deferred income tax liability	$	(32,915	)		(15,948	)

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

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

(in millions)	Year Ended December 31, 2012
Beginning balance	$	5.7
Current activity:
Additions based on tax positions related to current year		1.4
Additions for tax positions of prior years		2.0
Reductions for tax positions of prior years		(0.1	)
Settlements		—
Net, current activity		3.3
Ending balance	$	9.0

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