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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Schedule of Components of Income before Income Taxes | Below is a summary of the components of the Company’s income before income taxes for the years ended December 31 (in thousands).
| 2020 |  | 2019 |  | 2018
U.S. | $ | 111,880 |  |  | $ | 115,543 |  |  | $ | 34,159 |
Non-U.S. | 214,253 |  |  | 160,196 |  |  | 146,962 |
Income before income taxes | $ | 326,133 |  |  | $ | 275,739 |  |  | $ | 181,121 |
Schedule of Components of Income Tax | The components of the expense (benefit) for income taxes on the above income are summarized in the table below (in thousands).
| 2020 |  | 2019 |  | 2018
Current tax expense: |  |  |  |  |
U.S. federal | $ | 14,480 |  |  | $ | 30,208 |  |  | $ | 2,817 |
State and local | 16,360 |  |  | 11,630 |  |  | 6,969 |
Foreign | 62,993 |  |  | 53,105 |  |  | 45,042 |
Total current | 93,833 |  |  | 94,943 |  |  | 54,828 |
Deferred tax (benefit) expense: |  |  |  |  |
U.S. federal | (7,206) |  |  | (16,389) |  |  | 12,462 |
State and local | (13,121) |  |  | (6,897) |  |  | 1,258 |
Foreign | (22,673) |  |  | (48,186) |  |  | (13,795) |
Total deferred | (43,000) |  |  | (71,472) |  |  | (75) |
Total current and deferred | 50,833 |  |  | 23,471 |  |  | 54,753 |
Benefit relating to interest rate swaps used to increase equity | 8,257 |  |  | 17,666 |  |  | 3,840 |
Benefit from stock transactions with employees used to increase equity | 56 |  |  | 54 |  |  | 58 |
Benefit relating to defined-benefit pension adjustments used to increase equity | 242 |  |  | 1,258 |  |  | 14 |
Total tax expense | $ | 59,388 |  |  | $ | 42,449 |  |  | $ | 58,665 |
Schedule of Deferred Tax Assets and Liabilities | The components of long-term deferred tax assets (liabilities) are summarized in the table below (in thousands).
| December 31,
| 2020 |  | 2019
Accrued liabilities | $ | 81,302 |  |  | $ | 67,577 |
Operating leases | 51,450 |  |  | 54,860 |
Loss and credit carryforwards | 23,852 |  |  | 14,372 |
Assets relating to equity compensation | 14,981 |  |  | 16,842 |
Other assets | 16,290 |  |  | 20,364 |
Gross deferred tax assets | 187,875 |  |  | 174,015 |
Property, equipment and leasehold improvements | (9,852) |  |  | (15,137) |
Intangible assets | (172,723) |  |  | (212,498) |
Prepaid expenses | (46,105) |  |  | (49,221) |
Other liabilities | (13,152) |  |  | (5,799) |
Gross deferred tax liabilities | (241,832) |  |  | (282,655) |
Valuation allowance | (15,717) |  |  | (1,556) |
Net deferred tax liabilities | $ | (69,674) |  |  | $ | (110,196) |
Schedule of Effective Income Tax Rate Reconciliation | The items comprising the differences between the U.S. federal statutory income tax rate and the Company’s effective tax rate on income before income taxes for the years ended December 31 are summarized in the table below.
| 2020 |  | 2019 |  | 2018
Statutory tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal benefit | 1.7 |  |  | 1.5 |  |  | — |
Effect of non-U.S. operations | (1.8) |  |  | 2.7 |  |  | (10.7) |
Intercompany sale of intellectual property | (8.7) |  |  | (13.8) |  |  | — |
Change in the reserve for tax contingencies | 6.4 |  |  | 4.7 |  |  | 15.7 |
Law changes | 1.8 |  |  | — |  |  | (1.3) |
Stock-based compensation expense | (2.8) |  |  | (3.9) |  |  | (5.3) |
Nondeductible meals and entertainment costs | 0.3 |  |  | 1.7 |  |  | 2.7 |
Gains/Losses on divested operations and held-for-sale assets | — |  |  | — |  |  | 12.2 |
Limitation on executive compensation | 1.3 |  |  | 2.4 |  |  | 2.7 |
Global intangible low-taxed income, net of foreign tax credits | 1.4 |  |  | 1.9 |  |  | 0.1 |
Foreign-derived intangible income | (0.8) |  |  | (1.0) |  |  | (2.0) |
Goodwill | — |  |  | — |  |  | (3.8) |
Other items, net | (1.6) |  |  | (1.8) |  |  | 1.1 |
Effective tax rate | 18.2 | % |  | 15.4 | % |  | 32.4 | %
Schedule of Reconciliation of Beginning and Ending Unrecognized Tax Benefits | The table below is a reconciliation of the beginning and ending amounts of gross unrecognized tax benefits, excluding interest and penalties, for the years ended December 31 (in thousands).
| 2020 |  | 2019
Beginning balance | $ | 102,770 |  |  | $ | 90,349 |
Additions based on tax positions related to the current year | 20,177 |  |  | 32,072 |
Additions for tax positions of prior years | 14,085 |  |  | 8,564 |
Reductions for tax positions of prior years | (2,301) |  |  | (16,942) |
Reductions for expiration of statutes | (8,191) |  |  | (7,481) |
Settlements | (390) |  |  | (3,867) |
Change in foreign currency exchange rates | 930 |  |  | 75 |
Ending balance | $ | 127,080 |  |  | $ | 102,770 |

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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
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