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INCOME TAX (Tables) | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Expense | The income tax expense for the years ended December 31, 2024, 2023 and 2022 consisted of the following:
| Years Ended December 31,
| 2024 |  | 2023 |  | 2022
| (in thousands)
Current income tax expense (benefit): |  |  |  |  |
Federal | $ | 302,704 |  |  | $ | 306,351 |  |  | $ | 196,384 |
State | 61,776 |  |  | 79,685 |  |  | 48,216 |
Foreign | 189,403 |  |  | 194,333 |  |  | 111,814 |
| 553,883 |  |  | 580,369 |  |  | 356,414 |
Deferred income tax expense (benefit): |  |  |  |  |
Federal | (196,929) |  |  | (260,976) |  |  | (182,475) |
State | (46,506) |  |  | (37,832) |  |  | (20,089) |
Foreign | (71,379) |  |  | (87,614) |  |  | (28,053) |
| (314,814) |  |  | (386,422) |  |  | (230,617) |
| $ | 239,069 |  |  | $ | 193,947 |  |  | $ | 125,797 |
Schedule of Income (Loss) before Income Tax, Domestic and Foreign | The following table presents income (loss) before income taxes for the years ended December 31, 2024, 2023 and 2022:
| Years Ended December 31,
| 2024 |  |  |  | 2023 |  | 2022
| (in thousands)
United States | $ | 1,046,312 |  |  |  |  | $ | 288,093 |  |  | $ | (447,432) |
Foreign | 516,584 |  |  |  |  | 521,820 |  |  | 339,403 |
| $ | 1,562,896 |  |  |  |  | $ | 809,913 |  |  | $ | (108,029) |
Schedule of Effective Income Tax Rate Reconciliation | Our effective tax rates for the years ended December 31, 2024, 2023 and 2022 differ from the federal statutory rate for those periods as follows:
| Years Ended December 31,
| 2024 |  | 2023 |  | 2022
Federal U.S. statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Foreign inclusion, net of foreign tax credits | 2.2 |  |  | 8.5 |  |  | (14.0) |
Foreign income taxes | 1.8 |  |  | 2.6 |  |  | (1.6) |
Uncertain tax positions | 0.9 |  |  | 0.5 |  |  | (1.8) |
State income taxes, net of federal income tax benefit | 0.4 |  |  | 3.7 |  |  | (15.6) |
Nondeductible executive compensation | 0.4 |  |  | 1.3 |  |  | (9.8) |
Share-based compensation expense | 0.2 |  |  | 1.2 |  |  | (3.1) |
Net gain on dispositions and liquidations | — |  |  | 6.2 |  |  | (24.9) |
Goodwill impairment | — |  |  | — |  |  | (161.9) |
Valuation allowance | (0.3) |  |  | (0.6) |  |  | (0.3) |
Foreign-derived intangible income deduction | (0.5) |  |  | (0.6) |  |  | 5.4 |
Tax credits | (3.4) |  |  | (6.6) |  |  | 29.8 |
Foreign interest income not subject to tax | (7.5) |  |  | (13.7) |  |  | 62.1 |
Other | 0.1 |  |  | 0.4 |  |  | (1.7) |
Effective tax rate | 15.3 | % |  | 23.9 | % |  | (116.4) | %
Schedule of Deferred Tax Assets and Liabilities | As of December 31, 2024 and 2023, principal components of deferred tax items were as follows:
| 2024 |  | 2023
| (in thousands)
Deferred income tax assets: |  |  |
Research and development costs | $ | 285,861 |  |  | $ | 266,975 |
Foreign net operating loss carryforwards | 222,076 |  |  | 185,558 |
Credits | 197,877 |  |  | 141,456 |
Financial instruments | 110,621 |  |  | 91,032 |
Lease liabilities | 69,884 |  |  | 89,564 |
Accrued expenses | 48,769 |  |  | 53,925 |
Share-based compensation expense | 33,683 |  |  | 42,367 |
Domestic net operating loss carryforwards | 23,556 |  |  | 24,124 |
Other | 98,437 |  |  | 70,125 |
| 1,090,764 |  |  | 965,126 |
Valuation allowance | (241,197) |  |  | (211,049) |
| 849,567 |  |  | 754,077 |
Deferred tax liabilities: |  |  |
Acquired intangibles | 1,221,409 |  |  | 1,864,997 |
Partnership interests | 646,915 |  |  | 239,591 |
Property and equipment | 364,991 |  |  | 403,419 |
Right-of-use assets | 42,430 |  |  | 59,079 |
Other | 49,668 |  |  | 46,024 |
| 2,325,413 |  |  | 2,613,110 |
Net deferred income tax liability | $ | 1,475,846 |  |  | $ | 1,859,033 |
During the year ended December 31, 2024, as part of the integration of EVO into our Merchant Solutions business, certain deferred taxes, primarily those related to acquired intangibles, property and equipment and research and development costs, were reclassified into partnership interests. The net deferred income taxes reflected in our consolidated balance sheets as of December 31, 2024 and 2023 are as follows:
| 2024 |  | 2023
| (in thousands)
Noncurrent deferred income tax asset | $ | (98,386) |  |  | $ | (105,276) |
Noncurrent deferred income tax liability | 1,574,232 |  |  | 1,964,309 |
Net deferred income tax liability | $ | 1,475,846 |  |  | $ | 1,859,033 |
Schedule of Valuation Allowance | Changes to our valuation allowance during the years ended December 31, 2024, 2023 and 2022 are summarized below (in thousands):
Balance at December 31, 2021 | $ | (112,259) |
Allowance for foreign net operating losses | (122) |
Allowance for foreign tax credits | 60 |
Allowance for state tax credits | 2,282 |
Allowance for domestic net operating losses | (4) |
Balance at December 31, 2022 | (110,043) |
Allowance for foreign net operating losses | (674) |
Allowance for foreign tax credits | (101,271) |
Allowance for state tax credits | 3,079 |
Allowance for state interest limitation | (2,335) |
Allowance for domestic net operating losses | 195 |
Balance at December 31, 2023 | (211,049) |
Allowance for foreign net operating losses | (12,533) |
Allowance for foreign tax credits | (16,975) |
Allowance for state tax credits | (463) |
Allowance for state interest limitation | (177) |
Balance at December 31, 2024 | $ | (241,197) |
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, 2024, 2023 and 2022 is as follows:
| Years Ended December 31,
| 2024 |  | 2023 |  | 2022
| (in thousands)
Balance at the beginning of the year | $ | 43,229 |  |  | $ | 31,315 |  |  | $ | 34,905 |
Additions related to acquisitions | — |  |  | 4,054 |  |  | — |
Reductions for income tax positions of prior years | (164) |  |  | (887) |  |  | (8,301) |
Settlements with income tax authorities | (1,656) |  |  | (988) |  |  | (3,245) |
Additions for income tax positions of prior years | 9,092 |  |  | 1,809 |  |  | 911 |
Additions based on income tax positions related to the current year | 7,801 |  |  | 7,926 |  |  | 7,045 |
Balance at the end of the year | $ | 58,302 |  |  | $ | 43,229 |  |  | $ | 31,315 |

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