XML 63 R24.htm IDEA: XBRL DOCUMENT
v3.20.4

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income before income taxes is attributable to the following geographic locations for the years ended December 31, (in thousands):
| 2020 |  | 2019 |  | 2018
Domestic | $ | 18,395 |  |  | $ | 328,806 |  |  | $ | 298,009 |
Foreign | 497,830 |  |  | 363,791 |  |  | 135,029 |
Income before income taxes | $ | 516,225 |  |  | $ | 692,597 |  |  | $ | 433,038 |
The tax benefit (expenses) for income taxes consisted of the following components for the years ended December 31, (in thousands):
| 2020 |  | 2019 |  | 2018
Current: |  |  |  |  |
Federal | $ | 4,552 |  |  | $ | (17,906) |  |  | $ | 7,085 |
State and local | 1,597 |  |  | (4,624) |  |  | (2,663) |
Foreign | (171,092) |  |  | (135,356) |  |  | (118,175) |
Subtotal | (164,943) |  |  | (157,886) |  |  | (113,753) |
Deferred: |  |  |  |  |
Federal | 16,553 |  |  | (7,459) |  |  | (27,874) |
State and local | 704 |  |  | (1,775) |  |  | (1,165) |
Foreign | 1,535 |  |  | (18,232) |  |  | 75,113 |
Subtotal | 18,792 |  |  | (27,466) |  |  | 46,074 |
Income tax expense | $ | (146,151) |  |  | $ | (185,352) |  |  | $ | (67,679) |
State and foreign taxes not based on income are included in general and administrative expenses and the aggregate amounts were not significant for the years ended December 31, 2020, 2019 and 2018. The fiscal 2020, 2019, and 2018 income tax benefit (expenses) differed from the amounts computed by applying the U.S. federal income tax rate of 21% to pre-tax income as a result of the following for the years ended December 31 (in thousands):
| 2020 |  | 2019 |  | 2018
Federal tax at statutory rate | $ | (109,906) |  |  | $ | (145,445) |  |  | $ | (90,938) |
State and local tax (expense) benefit | 2,071 |  |  | (5,852) |  |  | (3,616) |
Deferred tax assets generated in current year not benefited | (12,852) |  |  | (5,398) |  |  | (3,777) |
Foreign income tax rate differential | (16,364) |  |  | (11,610) |  |  | (4,072) |
Non-deductible expenses | (4,427) |  |  | (1,021) |  |  | (756) |
Stock-based compensation expense | (954) |  |  | (2,105) |  |  | (2,308) |
Change in valuation allowance | 390 |  |  | (2,870) |  |  | 38,684 |
Foreign financing activities | (11,743) |  |  | (18,738) |  |  | (17,548) |
Loss on divestments | — |  |  | (3,277) |  |  | — |
Uncertain tax positions reserve | (38,014) |  |  | (35,724) |  |  | (20,440) |
Tax adjustments related to REIT | 50,107 |  |  | 63,614 |  |  | 32,189 |
Change in deferred tax adjustments | (136) |  |  | (10,574) |  |  | — |
Other, net | (4,323) |  |  | (6,352) |  |  | 4,903 |
Total income tax expense | $ | (146,151) |  |  | $ | (185,352) |  |  | $ | (67,679) |
The Tax Cuts and Jobs Act of 2017 included a Global Intangible Low-Taxed Income ("GILTI") provision that increases U.S. federal taxable income by certain foreign subsidiary income in the year it is earned. The Company's accounting policy is to treat any tax on GILTI inclusions as a current period cost included in the tax expense in the year incurred. The Company believes the GILTI inclusion provision will result in no financial statement impact provided the Company satisfies its REIT distribution requirement with respect to the GILTI inclusions. As a result of the Company's conversion to a REIT effective January 1, 2015, it is no longer the Company's intent to indefinitely reinvest undistributed foreign earnings. However, no deferred tax liability has been recognized to account for this change because the expected recovery of the basis difference will not result in U.S. taxes in the post-REIT conversion periods due to the fact that none of its foreign subsidiaries is owned by a U.S. taxable REIT subsidiary and the foreign withholding tax effect would be immaterial. The Company continues to assess the foreign withholding tax impact of its current policy and does not believe the distribution of its foreign earnings would trigger any significant foreign withholding taxes, as a majority of the foreign jurisdictions where the Company operates do not impose withholding taxes on dividend distributions to a corporate U.S. parent. The types of temporary differences that give rise to significant portions of the Company's deferred tax assets and liabilities are set out below as of December 31 (in thousands):
| 2020 |  | 2019 (1)
Deferred tax assets: |  |  |
Stock-based compensation expense | $ | 5,583 |  |  | $ | 2,675 |
Unrealized losses | 17,268 |  |  | 6,492 |
Lease liabilities | 214,560 |  |  | 189,951 |
Loss carryforwards and tax credits | 117,150 |  |  | 59,735 |
Others, net | 14,976 |  |  | 8,500 |
Gross deferred tax assets | 369,537 |  |  | 267,353 |
Valuation allowance | (82,344) |  |  | (57,812) |
Total deferred tax assets, net | 287,193 |  |  | 209,541 |
Deferred tax liabilities: |  |  |
Property, plant and equipment (2) | (346,916) |  |  | (271,262) |
Deferred income | (31,538) |  |  | (5,248) |
Intangible assets | (132,681) |  |  | (144,404) |
Total deferred tax liabilities | (511,135) |  |  | (420,914) |
Net deferred tax liabilities | $ | (223,942) |  |  | $ | (211,373) |
(1) The prior year amounts presented in the table above have been reclassified to conform with the current year presentation. (2) Property, plant and equipment included the net deferred tax liabilities related to operating and finance lease ROU assets. The tax basis of REIT assets, excluding investments in TRSs, is greater than the amounts reported for such assets in the accompanying consolidated balance sheet by approximately $2.0 billion as of December 31, 2020. The Company's accounting for deferred taxes involves weighing positive and negative evidence concerning the realizability of the Company's deferred tax assets in each taxing jurisdiction. After considering such evidence as the nature, frequency and severity of current and cumulative financial reporting losses, the sources of future taxable income and tax planning strategies, the Company concluded that valuation allowances were required in certain foreign jurisdictions. The operations in the jurisdictions for which a valuation allowance has been established have a history of significant losses as of December 31, 2020. As such, the Company does not believe these operations have established a sustained history of profitability and that a valuation allowance is, therefore, necessary. The Company also provided a valuation allowance against certain gross deferred tax assets in certain taxing jurisdictions as these deferred tax assets are not expected to be realizable in the foreseeable future. Changes in the valuation allowance for deferred tax assets for the years ended December 31, 2020, 2019 and 2018 are as follows (in thousands):
| 2020 |  | 2019 |  | 2018
Beginning balance | $ | 57,812 |  |  | $ | 57,003 |  |  | $ | 84,573 |
Amounts from acquisitions | 5,777 |  |  | (2,707) |  |  | 33,070 |
Divested balances | — |  |  | (351) |  |  | — |
Amounts recognized into income | (390) |  |  | 2,870 |  |  | (38,684) |
Current increase (decrease) | 15,044 |  |  | 697 |  |  | (13,086) |
Impact of foreign currency exchange | 4,101 |  |  | 300 |  |  | (8,870) |
Ending balance | $ | 82,344 |  |  | $ | 57,812 |  |  | $ | 57,003 |
The Company's NOL carryforwards for federal, state and foreign tax purposes which expire, if not utilized, at various intervals from 2021, are outlined below (in thousands):
Expiration Date |  | Federal (1) |  | State |  | Foreign (2) (3) |  | Total
2021 |  | $ | 110,035 |  |  | $ | — |  |  | $ | 1,580 |  |  | $ | 111,615 |
2022 to 2024 |  | 46,827 |  |  | — |  |  | 17,829 |  |  | 64,656 |
2025 to 2027 |  | 13,005 |  |  | — |  |  | 34,561 |  |  | 47,566 |
2028 to 2030 |  | — |  |  | — |  |  | 32,393 |  |  | 32,393 |
2031 to 2033 |  | — |  |  | 767 |  |  | — |  |  | 767 |
2034 to 2036 |  | 4,246 |  |  | 2,088 |  |  | 3,807 |  |  | 10,141 |
Thereafter |  | 152,495 |  |  | 38,929 |  |  | 399,501 |  |  | 590,925 |
|  | $ | 326,608 |  |  | $ | 41,784 |  |  | $ | 489,671 |  |  | $ | 858,063 |
(1)The total amount of NOL carryforwards that will not be available to offset the Company's future taxable income after dividend paid deduction due to Section 382 limitations was $165.1 million for federal. (2)In certain jurisdictions, the net operating loss carryforwards can only be used to offset a percentage of taxable income in a given year. (3)If certain substantial changes in the entity's ownership occur or have determined to have occurred, there may be a limitation on the amount of the carryforwards that can be utilized. As of December 31, 2020, the Company had tax credit carryforwards of $8.3 million, which expire, if not utilized, from 2021 to 2031. The Company also had capital losses of $8.0 million, which can be carried forward indefinitely. The beginning and ending balances of the Company's unrecognized tax benefits are reconciled below for the years ended December 31 (in thousands):
| 2020 |  | 2019 |  | 2018
Beginning balance | $ | 173,726 |  |  | $ | 150,930 |  |  | $ | 82,390 |
Gross increases related to prior year tax positions | 14,732 |  |  | — |  |  | 33,436 |
Gross decreases related to prior year tax positions | — |  |  | (1,160) |  |  | — |
Gross increases related to current year tax positions | 29,149 |  |  | 31,332 |  |  | 48,685 |
Decreases resulting from expiration of statute of limitation | (6,518) |  |  | (2,112) |  |  | (1,276) |
Decreases resulting from settlements | (3,330) |  |  | (5,264) |  |  | (12,305) |
Ending balance | $ | 207,759 |  |  | $ | 173,726 |  |  | $ | 150,930 |
The Company recognizes interest and penalties related to unrecognized tax benefits within income tax expense in the consolidated statements of operations. The Company accrued $21.3 million, $14.2 million, and $8.4 million for interest and penalties as of December 31, 2020, 2019 and 2018, respectively. The unrecognized tax benefits of $207.8 million as of December 31, 2020, of which $33.8 million is subject to an indemnification agreement, if subsequently recognized, will affect the Company's effective tax rate favorably at the time when such a benefit is recognized. Due to various tax years open for examination and the ongoing tax audits and inquiries by the tax authorities in different jurisdictions, it is reasonably possible that the balance of unrecognized tax benefits could significantly increase or decrease over the next 12 months as the Company may be subject to either examination by tax authorities, tax audit settlements, or a lapse in statute of limitations. The Company is currently unable to estimate the range of possible adjustments to the balance of unrecognized tax benefits. The Company's income tax returns for the years from 2017 through current year remain open to examination by federal and state taxing authorities. In addition, the Company's tax years of 2007 through current year remain open and subject to examination by local tax authorities in certain foreign jurisdictions in which the Company has major operations.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration