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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Components of deferred tax assets and deferred tax liabilities | The significant components of our deferred tax assets and deferred tax liabilities as of December 31, 2020 and 2019 are presented below:
| DECEMBER 31,
| 2020 |  | 2019
Deferred Tax Assets: |  |  |
Accrued liabilities and other adjustments | $ | 52,527 |  |  | $ | 53,197 |
Net operating loss carryforwards | 96,710 |  |  | 99,240 |
Federal benefit of unrecognized tax benefits | — |  |  | 3,039 |
Valuation allowance | (46,938) |  |  | (60,003) |
| 102,299 |  |  | 95,473 |
Deferred Tax Liabilities: |  |  |
Other assets, principally due to differences in amortization | (186,682) |  |  | (177,645) |
Plant and equipment, principally due to differences in depreciation | (59,711) |  |  | (67,515) |
Other | (29,265) |  |  | (21,903) |
| (275,658) |  |  | (267,063) |
Net deferred tax liability | $ | (173,359) |  |  | $ | (171,590) |
The deferred tax assets and deferred tax liabilities as of December 31, 2020 and 2019 are presented below:
| DECEMBER 31,
| 2020 |  | 2019
Noncurrent deferred tax assets (Included in Other, a component of Other assets, net) | $ | 25,018 |  |  | $ | 16,538 |
Deferred income taxes | (198,377) |  |  | (188,128) |
Roll forward of Valuation allowance | Rollforward of the valuation allowance is as follows:
YEAR ENDED DECEMBER 31, |  | BALANCE AT BEGINNING OF THE YEAR |  | CHARGED (CREDITED) TO EXPENSE |  | OTHER INCREASES/ (DECREASES)(1) |  | BALANCE AT END OF THE YEAR
2020 |  | $ | 60,003 |  |  | $ | (8,337) |  |  | $ | (4,728) |  |  | $ | 46,938 |
2019 |  | 55,666 |  |  | 6,211 |  |  | (1,874) |  |  | 60,003 |
2018 |  | 61,756 |  |  | 3,568 |  |  | (9,658) |  |  | 55,666 |
(1)Other increases and decreases in valuation allowances are primarily related to changes in foreign currency exchange rates.
Components of income (loss) from continuing operations before provision for income taxes | The components of income (loss) from continuing operations before provision (benefit) for income taxes for the years ended December 31, 2020, 2019 and 2018 are as follows:
| YEAR ENDED DECEMBER 31,
| 2020 |  | 2019 |  | 2018
United States | $ | 276,145 |  |  | $ | 203,225 |  |  | $ | 203,078 |
Canada | 52,332 |  |  | 48,326 |  |  | 53,779 |
Other Foreign | 44,228 |  |  | 76,591 |  |  | 153,454 |
| $ | 372,705 |  |  | $ | 328,142 |  |  | $ | 410,311 |
Provision (benefit) for income taxes | The provision (benefit) for income taxes for the years ended December 31, 2020, 2019 and 2018 consist of the following components:
| YEAR ENDED DECEMBER 31,
| 2020 |  | 2019 |  | 2018
Federal—current | $ | (10,424) |  |  | $ | 7,262 |  |  | $ | 703 |
Federal—deferred | 8,834 |  |  | (3,356) |  |  | (4,162) |
State—current | 2,956 |  |  | 3,943 |  |  | 918 |
State—deferred | (625) |  |  | (1,126) |  |  | 627 |
Foreign—current | 50,063 |  |  | 49,350 |  |  | 45,371 |
Foreign—deferred | (21,195) |  |  | 3,858 |  |  | (704) |
Provision (Benefit) for Income Taxes | $ | 29,609 |  |  | $ | 59,931 |  |  | $ | 42,753 |
9. INCOME TAXES (CONTINUED)
Reconciliation of total income tax expense and amount computed by applying the federal income tax rate | A reconciliation of total income tax expense and the amount computed by applying the current federal statutory tax rate of 21.0% to income (loss) from continuing operations before provision (benefit) for income taxes for the years ended December 31, 2020, 2019 and 2018, respectively, is as follows:
| YEAR ENDED DECEMBER 31,
| 2020 |  | 2019 |  | 2018
Computed "expected” tax provision | $ | 78,268 |  |  | $ | 68,910 |  |  | $ | 86,165 |
Changes in income taxes resulting from: |  |  |  |  |
Tax adjustment relating to REIT | (60,378) |  |  | (40,577) |  |  | (35,165) |
State taxes (net of federal tax benefit) | 2,258 |  |  | 2,115 |  |  | 1,599 |
(Decrease) increase in valuation allowance (net operating losses) | (8,337) |  |  | 6,211 |  |  | 3,568 |
(Reversal) reserve accrual and audit settlements (net of federal tax benefit) | (7,409) |  |  | 514 |  |  | (13,985) |
Foreign tax rate differential | 9,472 |  |  | 8,562 |  |  | 1,031 |
Disallowed foreign interest, Subpart F income, and other foreign taxes | 20,242 |  |  | 14,241 |  |  | 903 |
Other, net | (4,507) |  |  | (45) |  |  | (1,363) |
Provision (Benefit) for Income Taxes | $ | 29,609 |  |  | $ | 59,931 |  |  | $ | 42,753 |
The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate were:
YEAR ENDED DECEMBER 31,
2020 | 2019 | 2018
The benefit derived from the dividends paid deduction of $60,378 and the impact of differences in the tax rates at which our foreign earnings are subject to, resulting in a tax provision of $9,472. | The benefit derived from the dividends paid deduction of $40,577 and the impact of differences in the tax rates at which our foreign earnings are subject to, resulting in a tax provision of $8,562. | The benefit derived from the dividends paid deduction of $35,165, the impact of differences in the tax rates at which our foreign earnings are subject to, resulting in a tax provision of $1,031 and a discrete tax benefit of approximately $14,000 associated with the resolution of a tax matter (which was included as a component of Accrued expenses in our Consolidated Balance Sheet as of December 31, 2017).
As a REIT, we are entitled to a deduction for dividends paid, resulting in a substantial reduction of federal income tax expense. As a REIT, substantially all of our income tax expense will be incurred based on the earnings generated by our foreign subsidiaries and our domestic TRSs.
Reconciliation of unrecognized tax benefits | A rollforward of unrecognized tax benefits is as follows:
Gross tax contingencies—December 31, 2017 | $ | 38,533 |
Gross additions based on tax positions related to the current year | 3,147 |
Gross additions for tax positions of prior years | 981 |
Gross reductions for tax positions of prior years | (2,865) |
Lapses of statutes | (4,462) |
Settlements | (14) |
Gross tax contingencies—December 31, 2018 | 35,320 |
Gross additions based on tax positions related to the current year | 2,914 |
Gross additions for tax positions of prior years | 1,271 |
Gross reductions for tax positions of prior years | (299) |
Lapses of statutes | (4,034) |
Settlements | (104) |
Gross tax contingencies—December 31, 2019 | 35,068 |
Gross additions based on tax positions related to the current year | 2,907 |
Gross additions for tax positions of prior years | 80 |
Gross reductions for tax positions of prior years | (5,617) |
Lapses of statutes | (4,480) |
Settlements | (1,989) |
Gross tax contingencies—December 31, 2020 | $ | 25,969 |

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