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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Components of Income Before Provision for Income Taxes | The components of income before provision for income taxes consisted of the following (dollars in thousands):
|  | Year Ended December 31, |
|  |  | 2019 |  |  |  | 2018 |  |  |  | 2017 |
Domestic |  | $ | 839,899 |  |  | $ | 807,590 |  |  | $ | 575,222 |
Foreign |  |  | 521,446 |  |  |  | 571,416 |  |  |  | 596,111 |
|  | $ | 1,361,345 |  |  | $ | 1,379,006 |  |  | $ | 1,171,333 |
Tax Provision (Benefit) | Our tax provision (benefit) consisted of the following (dollars in thousands):
|  | Year Ended December 31, |
|  |  | 2019 |  |  |  | 2018 |  |  |  | 2017 |
Federal: |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | (51,980 | ) |  | $ | 166,024 |  |  | $ | 275,475 |
Deferred |  |  | (74,432 | ) |  |  | (7,667 | ) |  |  | 39,045 |
|  |  | (126,412 | ) |  |  | 158,357 |  |  |  | 314,520 |
State: |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  | 52,403 |  |  |  | 43,320 |  |  |  | 21,212 |
Deferred |  |  | (5,760 | ) |  |  | (3,692 | ) |  |  | 5,573 |
|  |  | 46,643 |  |  |  | 39,628 |  |  |  | 26,785 |
Foreign: |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  | 163,833 |  |  |  | 149,194 |  |  |  | 123,840 |
Deferred |  |  | (14,169 | ) |  |  | (34,121 | ) |  |  | 2,612 |
|  |  | 149,664 |  |  |  | 115,073 |  |  |  | 126,452 |
|  | $ | 69,895 |  |  | $ | 313,058 |  |  | $ | 467,757 |
Reconciliation of Pre-Tax Income | The following is a reconciliation stated as a percentage of pre-tax income of the U.S. statutory federal income tax rate to our effective tax rate:
|  | Year Ended December 31, |
|  |  | 2019 |  |  |  | 2018 |  |  |  | 2017 |
Federal statutory tax rate |  |  | 21 | % |  |  | 21 | % |  |  | 35 | %
Foreign rate differential |  |  | 4 |  |  |  | — |  |  |  | (5 | )
State taxes, net of federal benefit |  |  | 3 |  |  |  | 3 |  |  |  | 2 |
Non-deductible expenses |  |  | 1 |  |  |  | 2 |  |  |  | 2 |
Reserves for uncertain tax positions |  |  | 1 |  |  |  | — |  |  |  | (2 | )
Credits and exemptions |  |  | (4 | ) |  |  | (2 | ) |  |  | (3 | )
Outside basis differences recognized as a result of a legal entity restructuring |  |  | (20 | ) |  |  | — |  |  |  | — |
Tax Reform |  |  | — |  |  |  | 1 |  |  |  | 12 |
Change in valuation allowance |  |  | — |  |  |  | (1 | ) |  |  | (2 | )
Acquisition-related costs |  |  | — |  |  |  | (2 | ) |  |  | — |
Other |  |  | (1 | ) |  |  | 1 |  |  |  | 1 |
Effective tax rate |  |  | 5 | % |  |  | 23 | % |  |  | 40 | %
Temporary Tax Effects | Cumulative tax effects of temporary differences are shown below at December 31, 2019 and 2018 (dollars in thousands):
|  | December 31, |
|  |  | 2019 |  |  |  | 2018 |
Asset (Liability) |  |  |  |  |  |  |  |
Tax losses and tax credits |  | $ | 330,839 |  |  | $ | 275,574 |
Operating lease liabilities |  |  | 320,261 |  |  |  | — |
Bonus and deferred compensation |  |  | 280,747 |  |  |  | 276,572 |
Bad debt and other reserves |  |  | 66,504 |  |  |  | 57,506 |
Pension obligation |  |  | 24,022 |  |  |  | 22,950 |
Investments |  |  | 5,236 |  |  |  | 5,211 |
Tax effect on revenue items related to Topic 606 adoption |  |  | (25,620 | ) |  |  | (38,510 | )
Property and equipment |  |  | (54,370 | ) |  |  | (49,935 | )
Unconsolidated affiliates and partnerships |  |  | (63,594 | ) |  |  | (64,448 | )
Capitalized costs and intangibles |  |  | (277,246 | ) |  |  | (289,674 | )
Operating lease assets |  |  | (314,433 | ) |  |  | — |
All other |  |  | (1,153 | ) |  |  | (2,457 | )
Net deferred tax assets before valuation allowance |  |  | 291,193 |  |  |  | 192,789 |
Valuation allowance |  |  | (251,922 | ) |  |  | (248,511 | )
Net deferred tax assets (liabilities) |  | $ | 39,271 |  |  | $ | (55,722 | )
Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2019 and 2018 is as follows (dollars in thousands):
|  | Year Ended December 31, |
|  |  | 2019 |  |  |  | 2018 |
Beginning balance, unrecognized tax benefits |  | $ | (94,962 | ) |  | $ | (35,826 | )
Gross increases - tax positions in prior period |  |  | (22,229 | ) |  |  | (49,412 | )
Gross decreases - tax positions in prior period |  |  | 17,390 |  |  |  | — |
Gross increases - current-period tax positions |  |  | (45,262 | ) |  |  | (18,861 | )
Decreases relating to settlements |  |  | 218 |  |  |  | 4,619 |
Reductions as a result of lapse of statute of limitations |  |  | 3,680 |  |  |  | 4,531 |
Foreign exchange movement |  |  | 1 |  |  |  | (13 | )
Ending balance, unrecognized tax benefits |  | $ | (141,164 | ) |  | $ | (94,962 | )

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