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Income Taxes
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
We have been organized and have operated as a REIT effective beginning with our taxable year that ended on December 31, 2014. As a REIT, we are generally permitted to deduct from our federal taxable income the dividends we pay to our stockholders. The income represented by such dividends is not subject to federal taxation at the entity level but is taxed, if at all, at the stockholder level. The income of our domestic taxable REIT subsidiaries (“TRSs”), which hold our domestic operations that may not be REIT-compliant as currently operated and structured, is subject, as applicable, to federal and state corporate income tax. In addition, we and our subsidiaries continue to be subject to foreign income taxes in other jurisdictions in which we have business operations or a taxable presence, regardless of whether assets are held or operations are conducted through subsidiaries disregarded for federal income tax purposes or TRSs. We will also be subject to a separate corporate income tax on any gains recognized on the sale or disposition of any asset previously owned by a C corporation during a five-year period after the date we first owned the asset as a REIT asset that are attributable to “built-in gains” with respect to that asset on that date. We will also be subject to a built-in gains tax on our depreciation recapture recognized into income as a result of accounting method changes in connection with our acquisition activities. If we fail to remain qualified for taxation as a REIT, we will be subject to federal income tax at regular corporate income tax rates. Even if we remain qualified for taxation as a REIT, we may be subject to some federal, state, local and foreign taxes on our income and property in addition to taxes owed with respect to our TRS operations. In particular, while state income tax regimes often parallel the federal income tax regime for REITs, many states do not completely follow federal rules and some do not follow them at all.
The significant components of our deferred tax assets and deferred tax liabilities as of December 31, 2020 and 2019 are presented below:
 DECEMBER 31,
 20202019
Deferred Tax Assets:  
Accrued liabilities and other adjustments$52,527 $53,197 
Net operating loss carryforwards96,710 99,240 
Federal benefit of unrecognized tax benefits— 3,039 
Valuation allowance(46,938)(60,003)
102,299 95,473 
Deferred Tax Liabilities:  
Other assets, principally due to differences in amortization(186,682)(177,645)
Plant and equipment, principally due to differences in depreciation(59,711)(67,515)
Other(29,265)(21,903)
(275,658)(267,063)
Net deferred tax liability$(173,359)$(171,590)
The deferred tax assets and deferred tax liabilities as of December 31, 2020 and 2019 are presented below:
 DECEMBER 31,
 20202019
Noncurrent deferred tax assets (Included in Other, a component of Other assets, net)$25,018 $16,538 
Deferred income taxes(198,377)(188,128)
At December 31, 2020, we have federal and state net operating loss carryforwards of which we are expecting an insignificant tax benefit to be realized. We have assets for foreign net operating losses of $92,142, with various expiration dates (and in some cases no expiration date), subject to a valuation allowance of approximately 43%.
9. INCOME TAXES (CONTINUED)
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 
201955,666 6,211 (1,874)60,003 
201861,756 3,568 (9,658)55,666 
(1)Other increases and decreases in valuation allowances are primarily related to changes in foreign currency exchange rates.
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,
 202020192018
United States$276,145 $203,225 $203,078 
Canada52,332 48,326 53,779 
Other Foreign44,228 76,591 153,454 
$372,705 $328,142 $410,311 
The provision (benefit) for income taxes for the years ended December 31, 2020, 2019 and 2018 consist of the following components:
 YEAR ENDED DECEMBER 31,
 202020192018
Federal—current$(10,424)$7,262 $703 
Federal—deferred8,834 (3,356)(4,162)
State—current2,956 3,943 918 
State—deferred(625)(1,126)627 
Foreign—current50,063 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)
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,
 202020192018
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 differential9,472 8,562 1,031 
Disallowed foreign interest, Subpart F income, and other foreign taxes20,242 14,241 903 
Other, net(4,507)(45)(1,363)
Provision (Benefit) for Income Taxes$29,609 $59,931 $42,753 
Our effective tax rates for the years ended December 31, 2020, 2019 and 2018 were 7.9%, 18.3% and 10.4%, respectively. Our effective tax rate is subject to variability in the future due to, among other items: (1) changes in the mix of income between our qualified REIT subsidiaries (“QRSs”) and our TRSs, as well as among the jurisdictions in which we operate; (2) tax law changes; (3) volatility in foreign exchange gains and losses; (4) the timing of the establishment and reversal of tax reserves; and (5) our ability to utilize net operating losses that we generate.
The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate were:
YEAR ENDED DECEMBER 31,
20202019
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.
9. INCOME TAXES (CONTINUED)
Following our conversion to a REIT in 2014, we concluded that it was not our intent to reinvest our current and future undistributed earnings of our foreign subsidiaries indefinitely outside the United States. As of December 31, 2016, we concluded that it is our intent to indefinitely reinvest our current and future undistributed earnings of certain of our unconverted foreign TRSs outside the United States. With the exception of certain limited instances, we no longer provide incremental foreign withholding taxes on the retained book earnings of these unconverted foreign TRSs, which was approximately $262,379 as of December 31, 2020. As a REIT, future repatriation of incremental undistributed earnings of our foreign subsidiaries will not be subject to federal or state income tax, with the exception of foreign withholding taxes in limited instances; however, such future repatriations will require distribution in accordance with REIT distribution rules, and any such distribution may then be taxable, as appropriate, at the stockholder level. We continue, however, to provide for incremental foreign withholding taxes on net book over outside basis differences related to the earnings of our foreign QRSs and certain other foreign TRSs (excluding unconverted foreign TRSs).
The evaluation of an uncertain tax position is a two-step process. The first step is a recognition process whereby we determine whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The second step is a measurement process whereby a tax position that meets the more likely than not recognition threshold is calculated to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement.
We have elected to recognize interest and penalties associated with uncertain tax positions as a component of the provision (benefit) for income taxes in the accompanying Consolidated Statements of Operations. We recorded a decrease of $1,499 for gross interest and penalties for the year ended December 31, 2020. We recorded an increase of $1,780 and $1,961 for gross interest and penalties for the years ended December 31, 2019 and 2018, respectively. We had $6,212 and $9,282 accrued for the payment of interest and penalties as of December 31, 2020 and 2019, respectively.
A summary of tax years that remain subject to examination by major tax jurisdictions is as follows:
TAX YEARSTAX JURISDICTION
See BelowUnited States—Federal and State
2017 to presentUnited Kingdom
2014 to presentCanada
The normal statute of limitations for United States federal tax purposes is three years from the date the tax return is filed; however, the statute of limitations may remain open for periods longer than three years in instances where a federal tax examination is in progress. The 2019, 2018 and 2017 tax years remain subject to examination for United States federal tax purposes as well as net operating loss carryforwards utilized in these years. We utilized net operating losses from 2002 through 2003 and 2010 through 2015 in our federal income tax returns for these tax years. The normal statute of limitations for state purposes is between three to five years. However, certain of our state statute of limitations remain open for periods longer than this when audits are in progress.
We are subject to income taxes in the United States and numerous foreign jurisdictions. We are subject to examination by various tax authorities in jurisdictions in which we have business operations or a taxable presence. We regularly assess the likelihood of additional assessments by tax authorities and provide for these matters as appropriate. As of December 31, 2020, we had $25,969 of reserves related to uncertain tax positions, of which $23,402 and $2,567 is included in other long-term liabilities and deferred income taxes, respectively, in the accompanying Consolidated Balance Sheet. As of December 31, 2019, we had $35,068 of reserves related to uncertain tax positions, of which $31,992 and $3,076 is included in other long-term liabilities and deferred income taxes, respectively, in the accompanying Consolidated Balance Sheet. Although we believe our tax estimates are appropriate, the final determination of tax audits and any related litigation could result in changes in our estimates.
9. INCOME TAXES (CONTINUED)
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 year3,147 
Gross additions for tax positions of prior years981 
Gross reductions for tax positions of prior years(2,865)
Lapses of statutes(4,462)
Settlements(14)
Gross tax contingencies—December 31, 201835,320 
Gross additions based on tax positions related to the current year2,914 
Gross additions for tax positions of prior years1,271 
Gross reductions for tax positions of prior years(299)
Lapses of statutes(4,034)
Settlements(104)
Gross tax contingencies—December 31, 201935,068 
Gross additions based on tax positions related to the current year2,907 
Gross additions for tax positions of prior years80 
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 
The reversal of these reserves of $25,969 as of December 31, 2020 will be recorded as a reduction of our income tax provision, if sustained. We believe that it is reasonably possible that an amount up to approximately $2,989 of our unrecognized tax positions may be recognized by the end of 2021 as a result of a lapse of statute of limitations or upon closing and settling significant audits in various worldwide jurisdictions.