INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

U.S. and foreign earnings (loss) before income taxes and noncontrolling interests are as follows:



	Years Ended December 31,
	2018		2017			2016
	(In thousands)
U.S.	$	630,417	$	(52,606	)	$	(248,433	)
Foreign	131,141		119,564			167,348
Total	$	761,558	$	66,958		$	(81,085	)

Schedule of Components of Income Tax Expense (Benefit)

The components of the income tax provision (benefit) are as follows:



	Years Ended December 31,
	2018			2017			2016
	(In thousands)
Current income tax provision (benefit):
Federal	$	(2,849	)	$	(31,844	)	$	23,343
State	2,569			1,964			3,662
Foreign	38,770			24,108			27,242
Current income tax provision (benefit)	38,490			(5,772		)	54,247

Deferred income tax provision (benefit):
Federal	(21,792		)	(255,477		)	(100,798		)
State	172			(28,364		)	(9,518		)
Foreign	(13,059		)	(1,437		)	(8,865		)
Deferred income tax benefit	(34,679		)	(285,278		)	(119,181		)
Income tax provision (benefit)	$	3,811		$	(291,050	)	$	(64,934	)

Schedule of Income Taxes (Payable) Receivable and Deferred Tax (Liabilities) Assets

Income taxes receivable (payable) and deferred tax assets (liabilities) are included in the following captions in the accompanying consolidated balance sheet at December 31, 2018 and 2017:



	December 31,
	2018			2017
	(In thousands)
Income taxes receivable (payable):
Other current assets	$	10,132		$	33,239
Other non-current assets	11,401			1,949
Accrued expenses and other current liabilities	(12,745		)	(11,798		)
Income taxes payable	(37,584		)	(25,624		)
Net income taxes payable	$	(28,796	)	$	(2,234	)

Deferred tax assets (liabilities):
Other non-current assets	$	64,786		$	66,321
Deferred income taxes	(23,600		)	(35,070		)
Net deferred tax assets	$	41,186		$	31,251

Schedule of Deferred Tax Assets and Liabilities

The tax effects of cumulative temporary differences that give rise to significant deferred tax assets and deferred tax liabilities are presented below. The valuation allowance relates to deferred tax assets for which it is more likely than not that the tax benefit will not be realized.



	December 31,
	2018			2017
	(In thousands)
Deferred tax assets:
Accrued expenses	$	23,525		$	22,234
NOL carryforwards	291,639			292,812
Tax credit carryforwards	89,397			78,715
Stock-based compensation	82,698			77,976
Other	30,106			42,331
Total deferred tax assets	517,365			514,068
Less valuation allowance	(115,853		)	(132,598		)
Net deferred tax assets	401,512			381,470

Deferred tax liabilities:
Investment in subsidiaries	(238,650		)	(247,167		)
Intangibles	(77,669		)	(87,811		)
Fair value investment	(22,927		)	—
Other	(21,080		)	(15,241		)
Total deferred tax liabilities	(360,326		)	(350,219		)
Net deferred tax assets	$	41,186		$	31,251

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the income tax provision (benefit) to the amounts computed by applying the statutory federal income tax rate to earnings before income taxes is shown as follows:



	Years Ended December 31,
	2018			2017			2016
	(In thousands)
Income tax provision (benefit) at the federal statutory rate of 21% (35% for 2017 and 2016)	$	159,927		$	23,435		$	(28,446	)
State income taxes, net of effect of federal tax benefit	14,887			86			(3,880		)
Stock-based compensation	(129,654		)	(358,901		)	3,998
Realization of certain deferred tax assets	(13,200		)	(3,133		)	—
Transition tax	(9,190		)	62,667			—
Deferred tax adjustment for enacted changes in tax laws and rates	(7,488		)	705			(4,594		)
Research credit	(4,023		)	(5,304		)	(2,231		)
Foreign income taxed at a different statutory tax rate	(3,206		)	(14,725		)	(27,115		)
Non-taxable sale and non-deductible goodwill associated with ShoeBuy	—			—			(13,142		)
Goodwill impairment of Dotdash and Emerging & Other	—			—			10,649
Non-deductible impairments for certain cost method investments	—			2,669			3,489
Other, net	(4,242		)	1,451			(3,662		)
Income tax provision (benefit)	$	3,811		$	(291,050	)	$	(64,934	)

Schedule of Income Tax Contingencies

A reconciliation of the beginning and ending amount of unrecognized tax benefits, including penalties but excluding interest, is as follows:



	December 31,
	2018			2017			2016
	(In thousands)
Balance at January 1	$	36,732		$	38,372		$	40,808
Additions based on tax positions related to the current year	10,334			2,050			2,033
Additions for tax positions of prior years	4,716			1,994			2,676
Reductions for tax positions of prior years	(400		)	(3,761		)	(743		)
Settlements	—			—			(5,107		)
Expiration of applicable statutes of limitations	(2,507		)	(1,923		)	(1,295		)
Balance at December 31	$	48,875		$	36,732		$	38,372