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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income before income taxes was taxed under the following jurisdictions:
Year Ended December 31,
202120202019
Domestic$1,186.7 $934.3 $854.1 
Foreign111.1 68.0 95.6 
Total$1,297.8 $1,002.3 $949.7 
Components of Income tax expense (benefit) consist of the following:
Year Ended December 31,
202120202019
Current:
Federal$235.6 $166.5 $224.7 
State52.9 49.2 56.1 
Foreign27.4 18.3 20 
Total current315.9 234.0 300.8 
Deferred:
Domestic(8.7)(18.8)(83.0)
Foreign2.0 (1.4)(4.9)
Total deferred(6.7)(20.2)(87.9)
Income tax expense$309.2 $213.8 $212.9 
The reconciliation between the statutory tax rate expressed as a percentage of income before income taxes and the effective tax rate was as follows:
Year Ended December 31,
202120202019
Statutory federal income tax rate$272.5 21.0 %$210.5 21.0 %$199.4 21.0 %
State taxes, net of federal effect50.3 3.9 36.0 3.6 35.4 3.7 
Excess tax benefit of equity awards(30.1)(2.3)(28.8)(2.9)(26.8)(2.8)
Tax on foreign earnings1.7 0.1 1.0 0.1 2.1 0.2 
Effect of tax law changes4.8 0.4 (6.8)(0.7)— — 
Other10.0 0.7 1.9 0.2 2.8 0.3 
Effective tax rate$309.2 23.8 %$213.8 21.3 %$212.9 22.4 %
The tax effect of temporary differences that give rise to net deferred income tax liabilities is presented below. Reclassifications have been made to conform to current year presentation.
December 31,
20212020
Deferred tax assets:
Contract liabilities$45.3 $13.2 
Equity compensation plans22.7 20.1 
Net operating loss and credit carryforwards, net28.9 22.9 
Payroll and benefits37.6 21.8 
Operating lease liabilities51.6 47.5 
Accounts receivable18.0 26.0 
Other20.5 15.9 
Total deferred tax assets224.6 167.4 
Deferred tax liabilities:
Acquisition-related intangibles322.2 76.5 
Property and equipment47.6 39.9 
International investments— 19.2 
Operating lease right-of-use assets35.6 32.5 
Other26.5 23.3 
Total deferred tax liabilities431.9 191.4 
Deferred tax asset valuation allowance17.0 16.9 
Net deferred tax liabilities$224.3 $40.9 
The Company has income tax net operating losses and other carryforwards of $39 million that do not expire and state and international tax credit carryforwards of $20 million, which expire at various dates from 2026 through 2027.
The Company is indefinitely reinvested in its UK business, and therefore will not provide for any US deferred taxes on the earnings of the UK business. The Company is not permanently reinvested in its Canadian business and therefore has recognized deferred tax liabilities of $2 million as of December 31, 2021 related to Canada withholding taxes on earnings of its Canadian business.
In the ordinary course of business, the Company is subject to review by domestic and foreign taxing authorities, including the Internal Revenue Service (“IRS”). In general, the Company is no longer subject to audit by the IRS or state, local, or foreign taxing authorities for tax years through 2014. Various taxing authorities are in the process of auditing income tax returns of the Company and its subsidiaries. The Company does not anticipate that any adjustments from the audits would have a material impact on its Consolidated Financial Statements.
Changes in the Company’s unrecognized tax benefits as of December 31, 2021, 2020 and 2019 were as follows:
Year Ended December 31,
202120202019
Balance as of January 1$18.3 $17.7 $15.1 
Additions for tax positions related to current year0.1 0.1 2.6 
Additions for tax positions related to prior year— 0.5 — 
Balance as of December 31$18.4 $18.3 $17.7 
As of December 31, 2021, the Company had $18 million of unrecognized tax benefits that, if recognized, would have decreased income taxes and the corresponding effective income tax rate and increased net income. The impact of recognizing these tax benefits, net of the federal income tax benefit related to unrecognized state income tax benefits, would be approximately $15 million.