Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Components of Income Before Income Taxes

For financial reporting purposes, income before income taxes includes the following components (in thousands):


	Years Ended December 31,
	2017			2016		2015
United States	$	(42,863	)	$	134,740	$	52,563
Foreign		86,435			50,841		60,810

Total	$	43,572		$	185,581	$	113,373

Income Tax Expense (Benefit)

The expense (benefit) for income taxes consists of the following (in thousands):


	Years Ended December 31,
	2017			2016			2015
Federal
Current	$	2,586		$	14,108		$	(6,889	)
Deferred		19,212			19,034			18,024

Total		21,798			33,142			11,135
State
Current		(1,857	)		12,565			379
Deferred		(1,324	)		(2,502	)		(4,096	)

Total		(3,181	)		10,063			(3,717	)
Foreign
Current		16,048			11,671			15,117
Deferred		3,772			1,170			5,402

Total		19,820			12,841			20,519

Total	$	38,437		$	56,046		$	27,937

Summary of Differences Between Income Tax Expense Computed at Statutory Federal Income Tax Rate and Per Consolidated Statements of Operations

Differences between the income tax expense computed at the statutory federal income tax rate and per the consolidated statements of operations are summarized as follows (in thousands):


	Years Ended December 31,
	2017			2016			2015
Tax expense at federal rate of 35%	$	15,250		$	64,953		$	39,680
State income taxes, net of federal benefit		(2,238	)		7,060			(2,462	)
Change in valuation allowance		(1,884	)		(8,524	)		(9,066	)
Foreign tax rate differential		(15,622	)		(11,830	)		(5,710	)
Unrecognized tax benefit increase		3,007			1,045			2,977
Tax effect of foreign operations		5,532			5,988			261
Acquisition costs		—			28			—
Tax benefit of research & development		(1,904	)		(1,088	)		(871	)
Transition tax		20,867			—			—
Revaluation of deferred tax balances		14,953			—			—
Performance based compensation		2,081			—			—
Domestic production activities deduction		(3,793	)		(700	)		—
Other		2,188			(886	)		3,128

Income tax provision	$	38,437		$	56,046		$	27,937

Deferred Tax Assets and Liabilities Result from Differences in Timing of Recognition of Certain Income and Expense Items for Tax and Financial Accounting Purposes

The deferred tax assets and liabilities result from differences in the timing of the recognition of certain income and expense items for tax and financial accounting purposes. The sources of these differences at each balance sheet date are as follows (in thousands):


	December 31,
	2017			2016
Deferred income tax assets:
Net operating loss carryforwards	$	38,419		$	65,351
Tax credits		37,305			25,173
Compensation		18,124			39,340
Deferred revenue		22,248			27,303
Other		9,055			6,279

Gross deferred income tax assets		125,151			163,446
Less: valuation allowance		(7,808	)		(9,659	)

Net deferred income tax assets	$	117,343		$	153,787

Deferred income tax liabilities:
Depreciation and amortization	$	(67,504	)	$	(102,657	)

Total deferred income tax liabilities		(67,504	)		(102,657	)

Net deferred income taxes	$	49,839		$	51,130

Deferred income taxes / liabilities included in the balance sheet are:
Deferred income tax asset - noncurrent	$	66,749		$	77,479
Deferred income tax liability - noncurrent		(16,910	)		(26,349	)

Net deferred income taxes	$	49,839		$	51,130

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31 is as follows (in thousands):


	2017			2016			2015
Balance of unrecognized tax benefits at beginning of year	$	24,278		$	21,079		$	14,780
Increases for tax positions of prior years		2,478			58			1,449
Decreases for tax positions of prior years		(114	)		(361	)		(47	)
Increases for tax positions established for the current period		1,677			5,185			9,866
Decreases for settlements with taxing authorities		(154	)		(167	)		(594	)
Reductions resulting from lapse of applicable statute of limitation		(1,155	)		(1,310	)		(4,218	)
Adjustment resulting from foreign currency translation		227			(206	)		(157	)

Balance of unrecognized tax benefits at end of year	$	27,237		$	24,278		$	21,079