Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

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)	2015			2014			2013
Current income tax expense:
Federal	$	139,228			126,203			74,327
State		9,255			5,161			2,949
Foreign		4,762			7,694			6,822
Total current income tax expense		153,245			139,058			84,098
Deferred income tax expense (benefit):
Federal		(2,198	)		(3,623	)		27,447
State		442			(2,039	)		(55	)
Foreign		(125	)		(3,635	)		(509	)
Total deferred income tax expense (benefit)		(1,881	)		(9,297	)		26,883
Total income tax expense	$	151,364			129,761			110,981

Components of Income Tax Before Income Tax

	Years Ended December 31,
(in thousands)	2015		2014		2013
Components of income before income tax expense:
Domestic	$	488,515		369,888		328,052
Foreign		8,373		23,041		24,424
Total income before income tax expense	$	496,888		392,929		352,476

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)	2015			2014			2013
Computed “expected” income tax expense	$	173,911			137,525			123,367
Increase (decrease) in income tax expense resulting from:
International tax rate differential and equity income		8,367			6,541			1,870
State income tax expense, net of federal income tax effect		7,101			4,823			3,408
Increase (decrease) in valuation allowance		(517	)		(4,550	)		1,715
Tax credits		(28,831	)		(3,459	)		(6,141	)
Deduction for domestic production activities		(11,550	)		(8,750	)		(8,225	)
Permanent differences and other, net		2,883			(2,369	)		(5,013	)
Total income tax expense	$	151,364			129,761			110,981

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 as of December 31, 2015 and 2014 relate to the following:

	As of December 31,
(in thousands)	2015			2014
Deferred income tax assets:
Net operating loss and income tax credit carryforwards	$	29,522			31,978
Allowances for doubtful accounts and billing adjustments		1,399			1,328
Deferred revenue		31,713			31,240
Share-based compensation		22,088			24,449
Other, net		34,673			24,743
Total deferred income tax assets		119,395			113,738
Less valuation allowance for deferred income tax assets		(18,446	)		(18,963	)
Net deferred income tax assets		100,949			94,775
Deferred income tax liabilities:
Excess tax over financial statement depreciation		(61,161	)		(53,527	)
Computer software development costs		(82,835	)		(67,703	)
Purchase accounting adjustments		(114,171	)		(136,701	)
Foreign currency translation		(4,522	)		(7,642	)
Other, net		(24,462	)		(18,830	)
Total deferred income tax liabilities		(287,151	)		(284,403	)
Net deferred income tax liabilities	$	(186,202	)		(189,628	)
Total net deferred tax assets (liabilities):
Current	$	24,670			15,190
Noncurrent		(210,872	)		(204,818	)
Net deferred income tax liability	$	(186,202	)		(189,628	)

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, 2015
Beginning balance	$	6.7
Current activity:
Additions based on tax positions related to current year		2.3
Additions for tax positions of prior years		4.7
Reductions for tax positions of prior years		(0.6	)
Net, current activity		6.4
Ending balance	$	13.1

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