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Income Taxes | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income before the provision for income taxes is attributable to the following jurisdictions for years ended December 31 (in thousands):
|  | 2020 |  | 2019 |  | 2018
United States |  | $ | 457,090 |  |  | $ | 505,818 |  |  | $ | 622,214 |
Foreign |  | 425,435 |  |  | 572,001 |  |  | 472,911 |
Total |  | $ | 882,525 |  |  | $ | 1,077,819 |  |  | $ | 1,095,125 |
The provision for income taxes for the years ended December 31 consists of the following (in thousands):
|  | 2020 |  | 2019 |  | 2018
Current: |  |  |  |  |  |
Federal |  | $ | 71,123 |  |  | $ | 50,145 |  |  | $ | 165,303 |
State |  | 19,597 |  |  | 10,285 |  |  | 26,036 |
Foreign |  | 71,921 |  |  | 84,433 |  |  | 95,053 |
Total current |  | 162,641 |  |  | 144,863 |  |  | 286,392 |
Deferred: |  |  |  |  |  |
Federal |  | 143 |  |  | (10,479) |  |  | (19,688) |
State |  | (4,323) |  |  | 3,745 |  |  | 8,727 |
Foreign |  | 19,848 |  |  | 44,617 |  |  | 8,211 |
Total deferred |  | 15,668 |  |  | 37,883 |  |  | (2,750) |
Total provision |  | $ | 178,309 |  |  | $ | 182,746 |  |  | $ | 283,642 |
The provision for income taxes differs from amounts computed by applying the U.S. federal tax rate of 21% for 2020, 2019, and 2018, respectively, to income before income taxes for the years ended December 31, 2020, 2019 and 2018 due to the following (in thousands):
|  | 2020 |  | 2019 |  | 2018
Computed “expected” tax expense |  | $ | 185,330 |  |  | 21.0 | % |  | $ | 226,342 |  |  | 21.0 | % |  | $ | 229,976 |  |  | 21.0 | %
Changes resulting from: |  |  |  |  |  |  |  |  |  |  |  |
Change in valuation allowance |  | 25,932 |  |  | 2.9 |  |  | (28,614) |  |  | (2.7) |  |  | 25,193 |  |  | 2.8 |
Foreign income tax differential |  | (20,852) |  |  | (2.3) |  |  | (15,816) |  |  | (1.4) |  |  | 9,921 |  |  | 0.9 |
State taxes net of federal benefits |  | 7,489 |  |  | 0.8 |  |  | 12,482 |  |  | 1.2 |  |  | 20,480 |  |  | 1.9 |
Increase in tax expense due to uncertain tax positions |  | 14,848 |  |  | 1.7 |  |  | — |  |  | — |  |  | — |  |  | — |
Foreign-sourced nontaxable income |  | — |  |  | — |  |  | — |  |  | — |  |  | (28,861) |  |  | (2.6) |
Foreign withholding tax |  | 15,630 |  |  | 1.8 |  |  | 20,360 |  |  | 1.9 |  |  | 20,569 |  |  | 1.9 |
Excess tax benefits related to stock-based compensation |  | (58,942) |  |  | (6.7) |  |  | (38,156) |  |  | (3.5) |  |  | (19,255) |  |  | (1.8) |
Revaluation of capital loss deferred tax asset |  | — |  |  | — |  |  | (24,279) |  |  | (2.3) |  |  | — |  |  | — |
Impact of the Tax Act: |  |  |  |  |  |  |  |  |  |  |  |
Foreign tax credit- one-time transition tax |  | — |  |  | — |  |  | — |  |  | — |  |  | 17,385 |  |  | 1.6 |
Deferred tax effects |  | — |  |  | — |  |  | — |  |  | — |  |  | 7,128 |  |  | 0.1 |
Sub-part F Income/GILTI |  | 34,990 |  |  | 4.0 |  |  | 49,859 |  |  | 4.6 |  |  | 40,200 |  |  | 3.7 |
Foreign tax credits |  | (30,497) |  |  | (3.5) |  |  | (38,657) |  |  | (3.6) |  |  | (52,095) |  |  | (4.8) |
Other |  | 4,381 |  |  | 0.5 |  |  | 19,225 |  |  | 1.8 |  |  | 13,001 |  |  | 1.2 |
Provision for income taxes |  | $ | 178,309 |  |  | 20.2 | % |  | $ | 182,746 |  |  | 17.0 | % |  | $ | 283,642 |  |  | 25.9 | %
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31 are as follows (in thousands):
|  | 2020 |  | 2019
Deferred tax assets: |  |  |  |
Accounts receivable, principally due to the allowance for doubtful accounts |  | $ | 10,515 |  |  | $ | 9,586 |
Accrued expenses not currently deductible for tax |  | 3,442 |  |  | 2,305 |
Lease deferral |  | 23,506 |  |  | 24,713 |
Interest rate swap |  | 21,792 |  |  | 13,781 |
Stock based compensation |  | 36,015 |  |  | 39,779 |
Income tax credits |  | 51,264 |  |  | 35,845 |
Net operating loss carry forwards |  | 83,372 |  |  | 67,108 |
Accrued escheat |  | 3,567 |  |  | 3,098 |
Other |  | 11,711 |  |  | 3,522 |
Deferred tax assets before valuation allowance |  | 245,184 |  |  | 199,737 |
Valuation allowance |  | (90,340) |  |  | (64,482) |
Deferred tax assets, net |  | 154,844 |  |  | 135,255 |
Deferred tax liabilities: |  |  |  |
Intangibles—including goodwill |  | (481,388) |  |  | (499,525) |
Basis difference in investment in subsidiaries |  | (42,313) |  |  | (42,314) |
Lease deferral |  | (19,977) |  |  | (21,810) |
Accrued Expense Liability |  | (513) |  |  | (4,023) |
Prepaid expenses |  | (2,126) |  |  | (2,075) |
Withholding taxes |  | (30,488) |  |  | (30,366) |
Property and equipment and other |  | (71,342) |  |  | (52,467) |
Deferred tax liabilities |  | (648,147) |  |  | (652,580) |
Net deferred tax liabilities |  | $ | (493,303) |  |  | $ | (517,325) |
The Company’s deferred tax balances are classified in its balance sheets as of December 31 as follows (in thousands):
|  | 2020 |  | 2019
Long term deferred tax assets and liabilities: |  |  |  |
Long term deferred tax assets |  | $ | 4,851 |  |  | $ | 2,655 |
Long term deferred tax liabilities |  | (498,154) |  |  | (519,980) |
Net deferred tax liabilities |  | $ | (493,303) |  |  | $ | (517,325) |
The valuation allowance for deferred tax assets changed during 2020 as follows (in thousands):
Balance at December 31, 2017 (after impact of tax reform) |  | $ | 59,349 |
Additions based on changes in deferred tax assets |  | 25,193 |
Increase in valuation allowance due to rate change from Tax Act |  | 5,824 |
Balance at December 31, 2018 |  | 90,366 |
Reductions based on changes in deferred tax assets |  | (28,601) |
Additions based on changes in deferred tax assets |  | 2,717 |
Balance at December 31, 2019 |  | 64,482 |
Additions based on changes in deferred tax assets |  | 25,932 |
Reductions based on changes in deferred tax assets |  | (74) |
Balance at December 31, 2020 |  | $ | 90,340 |
The valuation allowances relate to capital loss carryforwards, income tax credits, foreign net operating loss carryforwards and state net operating loss carryforwards. The net change in the total valuation allowance for the year ended December 31, 2020, was an increase of $25.9 million. The valuation increase from the prior year was primarily due to foreign tax credits generated in Luxembourg due to the payment of various withholding taxes outside of Luxembourg as well as state net operating losses generated in the U.S. in certain states where the Company and its subsidiaries file on a separate company basis. As of December 31, 2020, the Company had a net operating loss carryforward for U.S. federal income tax purposes of approximately $16.0 million that is available to offset U.S. federal taxable income through 2039. The Company had a net operating loss carryforward for state income tax purposes of approximately $794.2 million that is available to offset future state taxable income through 2039. Additionally, the Company had $114.3 million net operating loss carryforwards for foreign income tax purposes that are available to offset future foreign taxable income. The foreign net operating loss carryforwards will not expire in future years. The Company has provided a valuation allowance against $39.0 million of its deferred tax asset related to the net operating losses as it does not anticipate utilizing the losses in the foreseeable future. In addition, the Company has foreign tax credits for foreign income purposes in the amount of $51.3 million. The Company has provided a valuation allowance against $51.3 million of the tax credits as it does not anticipate utilizing the credits in the foreseeable future. During 2020 and 2019, the Company had recorded accrued interest and penalties related to the unrecognized tax benefits of $5.7 million and $3.4 million, respectively. Accumulated interest and penalties were $12.5 million and $12.7 million on the Consolidated Balance Sheets at December 31, 2020 and 2019, respectively. In accordance with the Company's accounting policy, interest and penalties related to unrecognized tax benefits are included as a component of income tax expense. A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits excluding interest and penalties for the years ended December 31, 2020, 2019 and 2018 is as follows (in thousands):
Unrecognized tax benefits at December 31, 2017 |  | $ | 31,558 |
Additions based on tax provisions related to the current year |  | 3,755 |
Deductions based on settlement/expiration of prior year tax positions |  | (4,161) |
Additions based on tax provisions related to the prior year |  | 3,000 |
Unrecognized tax benefits at December 31, 2018 |  | 34,152 |
Additions based on tax provisions related to the current year |  | 4,284 |
Additions based on tax provisions related to the prior year |  | 11,679 |
Deductions based on settlement/expiration of prior year tax positions |  | (7,342) |
Unrecognized tax benefits at December 31, 2019 |  | 42,773 |
Additions based on tax provisions related to the current year |  | 6,412 |
Additions based on tax provisions related to the prior year |  | 13,532 |
Deduction of cumulative interest and penalties |  | (12,508) |
Deductions based on expiration of prior year tax positions |  | (14,460) |
Unrecognized tax benefits at December 31, 2020 |  | $ | 35,749 |
In prior years, the Company included interest and penalties related to unrecognized tax benefits in its tabular reconciliation above. A cumulative adjustment has been made in 2020 to remove interest and penalties from the above tabular disclosure. As of December 31, 2020, the Company had total unrecognized tax benefits of $35.7 million all of which, if recognized, would affect its effective tax rate. It is not anticipated that there are any unrecognized tax benefits that will significantly increase or decrease within the next twelve months. The Company files numerous consolidated and separate income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The statute of limitations for the Company’s U.S. federal income tax returns has expired for years prior to 2014. The statute of limitations for state income tax returns has expired for years prior to 2014. The statute of limitations for the Company’s U.K. income tax returns has expired for years prior to 2018. The statute of limitations has expired for years prior to 2017 for the Company’s Czech Republic income tax returns, 2017 for the Company’s Russian income tax returns, 2015 for the Company’s Mexican income tax returns, 2015 for the Company’s Brazilian income tax returns, 2015 for the Company’s Luxembourg income tax returns, 2016 for the Company’s New Zealand income tax returns, and 2018 for the Company’s Australian income tax returns.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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