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INCOME TAX (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The income tax provision (benefit) for the years ended December 31, 2018 and 2017, the 2016 fiscal transition period and the year ended May 31, 2016 consisted of the following:

	Year Ended December 31,								Seven Months Ended December 31,				Year Ended May 31,
	2018				2017				2016				2016
	(in thousands)
Current income tax provision (benefit):
Federal	$	(20,984	)		$	79,903			$	22,859			$	26,493
State	21,122				3,468				3,443				5,454
Foreign	79,320				67,851				42,681				56,689
	79,458				151,222				68,983				88,636
Deferred income tax provision (benefit):
Federal	(8,760		)		(266,869		)		(36,447		)		(18,205		)
State	(1,684		)		9,678				(1,842		)		(3,620		)
Foreign	8,474				4,582				4,967				3,884
	(1,970		)		(252,609		)		(33,322		)		(17,941		)
	$	77,488			$	(101,387	)		$	35,661			$	70,695

Schedule of Income before Income Tax, Domestic and Foreign

The following table presents income (loss) before income taxes for the years ended December 31, 2018 and 2017, the 2016 fiscal transition period and the year ended May 31, 2016:

	Year Ended December 31,								Seven Months Ended December 31,				Year Ended May 31,
	2018				2017				2016				2016
	(in thousands)
United States	$	131,067			$	29,692			$	(55,279	)		$	59,876
Foreign	431,089				362,991				228,623				301,036
	$	562,156			$	392,683			$	173,344			$	360,912

Schedule of Effective Income Tax Rate Reconciliation

Our effective tax rates for periods presented differ from the federal statutory rate for the years ended December 31, 2018 and 2017, the 2016 fiscal transition period and the year ended May 31, 2016 as follows:

	Year Ended December 31,						Seven Months Ended December 31,			Year Ended May 31,
	2018			2017			2016			2016
Federal U.S. statutory rate	21.0	%		35.0	%		35.0	%		35.0	%
State income taxes, net of federal income tax benefit	2.7			1.9			0.6			0.4
Foreign income taxes (primarily U.K.)	(0.5	)		(12.0	)		(12.6	)		(10.1	)
Foreign interest income not subject to tax	(1.7	)		(2.2	)		(2.3	)		(2.6	)
Federal U.S. transition tax	(4.1	)		16.2			—			—
Federal U.S. rate reduction	—			(55.6	)		—			—
Other SAB 118 adjustments	(0.6	)		—			—			—
Share-based compensation expense	(2.1	)		(4.2	)		—			—
Foreign-derived intangible income deduction	(1.6	)		—			—			—
Taxes on unremitted earnings	—			—			—			(3.5	)
Valuation allowance	1.4			(3.2	)		—			—
Other	(0.7	)		(1.7	)		(0.1	)		0.4
Effective tax rate	13.8	%		(25.8	)%		20.6	%		19.6	%

Schedule of Deferred Tax Assets and Liabilities

As of December 31, 2018 and 2017, principal components of deferred tax items were as follows:

	2018				2017
	(in thousands)
Deferred income tax assets:
Basis difference - U.K. business	$	4,890			$	8,961
Domestic net operating loss carryforwards	20,096				17,228
Foreign net operating loss carryforwards	10,833				3,819
Share-based compensation expense	11,333				7,856
Accrued expenses	35,913				34,582
Other	16,906				18,502
	99,971				90,948
Less valuation allowance	(23,390		)		(16,550		)
	76,581				74,398
Deferred tax liabilities:
Acquired intangibles	522,636				410,563
Property and equipment	102,654				77,481
Other	28,188				10,087
	653,478				498,131
Net deferred income tax liability	$	(576,897	)		$	(423,733	)

The net deferred income taxes reflected on our consolidated balance sheets as of December 31, 2018 and 2017 are as follows:

	2018				2017
	(in thousands)
Noncurrent deferred income tax asset	$	8,128			$	13,146
Noncurrent deferred income tax liability	(585,025		)		(436,879		)
Net deferred income tax liability	$	(576,897	)		$	(423,733	)

Summary of Valuation Allowance

Changes to our valuation allowance during the years ended December 31, 2018 and 2017, the 2016 fiscal transition period and the year ended May 31, 2016 are summarized below (in thousands):

Balance at May 31, 2015	$	(3,823	)
Allowance for foreign income tax credit carryforward	(7,140		)
Allowance for domestic net operating loss carryforwards	(4,474		)
Allowance for domestic net unrealized capital loss	(1,526		)
Release of allowance of domestic capital loss carryforward	1,746
Other	98
Balance at May 31, 2016	(15,119		)
Allowance for domestic net operating loss carryforwards	(1,504		)
Release of allowance of domestic net unrealized capital loss	12
Balance at December 31, 2016	(16,611		)
Allowance for foreign net operating loss carryforwards	(6,469		)
Allowance for domestic net operating loss carryforwards	(3,793		)
Allowance for state credit carryforwards	(685		)
Rate change on domestic net operating loss and capital loss carryforwards	3,868
Utilization of foreign income tax credit carryforward	7,140
Balance at December 31, 2017	(16,550		)
Allowance for foreign net operating loss carryforwards	(7,979		)
Allowance for domestic net operating loss carryforwards	1,145
Allowance for state credit carryforwards	(6		)
Balance at December 31, 2018	$	(23,390	)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amounts of unrecognized income tax benefits, excluding penalties and interest, for the years ended December 31, 2018 and 2017, the 2016 fiscal transition period and the year ended May 31, 2016 is as follows:

	Year Ended December 31,								Seven Months Ended December 31,				Year Ended May 31,
	2018				2017				2016				2016
	(in thousands)
Balance at the beginning of the year	$	31,218			$	17,916			$	7,803			$	2,559
Additions based on income tax positions related to the current year	—				7,537				4,626				287
Additions related to acquisition	—				13,061				6,149				6,151
Additions for income tax positions of prior years	—				411				247				753
Effect of foreign currency fluctuations on income tax positions	—				27				(3		)		2
Reductions for income tax positions of prior years	(10,021		)		(7,285		)		(906		)		(123		)
Settlements with income tax authorities	—				(449		)		—				(1,826		)
Balance at the end of the year	$	21,197			$	31,218			$	17,916			$	7,803

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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