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Income Taxes (Note) | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
INCOME TAXES | Income Taxes The sources of income before income taxes for the years ended December 31, 2019, 2018 and 2017 are presented as follows:
|  | Year Ended December 31,
(in thousands) |  | 2019 |  | 2018 |  | 2017
Income before taxes: |  |  |  |  |  |
United States |  | $ | 44,290 |  |  | $ | 35,467 |  |  | $ | 55,117 |
Foreign |  | 389,517 |  |  | 259,449 |  |  | 201,218 |
Total income before income taxes |  | $ | 433,807 |  |  | $ | 294,916 |  |  | $ | 256,335 |
The Company's income tax expense for the years ended December 31, 2019, 2018 and 2017 consisted of the following:
|  | Year Ended December 31,
(in thousands) |  | 2019 |  | 2018 |  | 2017
Current tax expense (benefit): |  |  |  |  |  |
U.S. |  | $ | (4,885 | ) |  | $ | (8,711 | ) |  | $ | 29,620 |
Foreign |  | 83,792 |  |  | 70,244 |  |  | 79,475 |
Total current |  | 78,907 |  |  | 61,533 |  |  | 109,095 |
Deferred tax expense (benefit): |  |  |  |  |  |  |  |  |
U.S. |  | (8,424 | ) |  | 6,871 |  |  | 14,056 |
Foreign |  | 16,629 |  |  | (5,619 | ) |  | (23,756 | )
Total deferred |  | 8,205 |  |  | 1,252 |  |  | (9,700 | )
Total tax expense |  | $ | 87,112 |  |  | $ | 62,785 |  |  | $ | 99,395 |
The following is a reconciliation of the federal statutory income tax rates of 21% for the years ended December 31, 2019 and 2018 and 35% for the year ended December 31, 2017 to the effective income tax rate for the same years:
|  | Year Ended December 31,
(dollar amounts in thousands) |  | 2019 |  | 2018 |  | 2017
U.S. federal income tax expense at applicable statutory rate |  | $ | 91,099 |  |  | $ | 61,932 |  |  | $ | 89,684 |
Tax effect of: |  |  |  |  |  |  |  |  |
State income tax expense (benefit) at statutory rates |  | 5,101 |  |  | 1,680 |  |  | 968 |
Non-deductible expenses |  | 2,896 |  |  | 3,457 |  |  | 5,648 |
Share-based compensation |  | (2,875 | ) |  | (13,750 | ) |  | (4,845 | )
Other permanent differences |  | (864 | ) |  | (6,141 | ) |  | 8,458 |
Difference between U.S. federal and foreign tax rates |  | 12,281 |  |  | 9,843 |  |  | (24,270 | )
Provision in excess of statutory rates |  | 3,565 |  |  | 3,737 |  |  | 8,426 |
Change in federal and foreign valuation allowance |  | 2,144 |  |  | 3,075 |  |  | (30,224 | )
Impairment of goodwill and acquired intangibles assets |  | — |  |  | 83 |  |  | 8,248 |
GILTI, net of tax credits |  | 6,471 |  |  | 14,111 |  |  | — |
U.S. Tax Reform - transition tax and rate change |  | (25,728 | ) |  | (12,262 | ) |  | 41,597 |
Tax credits |  | (4,500 | ) |  | — |  |  | — |
Other |  | (2,478 | ) |  | (2,980 | ) |  | (4,295 | )
Total income tax expense |  | $ | 87,112 |  |  | $ | 62,785 |  |  | $ | 99,395 |
Effective tax rate |  | 20.1 | % |  | 21.3 | % |  | 38.8 | %
We calculate our provision for federal, state and international income taxes based on current tax law. On December 22, 2017, the U.S. enacted into law what is informally called the Tax Cuts and Jobs Act of 2017 ("U.S. Tax Reform"). The most significant provisions of U.S. Tax Reform are the transition tax on previously undistributed foreign earnings of foreign subsidiaries, the reduction of the U.S. corporate statutory income tax rate from 35% to 21% beginning on January 1, 2018, and new taxes on certain foreign sourced earnings. In 2017, the Company initially recorded a net provisional tax expense of $41.6 million resulting from the enactment of U.S. Tax Reform. In the fourth quarter of 2018, the Company adjusted its accounting for the tax effects of U.S. Tax Reform. The net provisional tax expense was decreased in that period by approximately $12.3 million to $29.3 million largely due to changes in the transition tax calculations. In the fourth quarter of 2019 after additional regulatory guidance was issued by applicable taxing authorities, the Company elected to claim U.S. tax credits on foreign tax paid on foreign source income, which reduced the net tax expense by $25.7 million. The tax effect of temporary differences and carryforwards that give rise to deferred tax assets and liabilities from continuing operations are as follows:
|  | As of December 31,
(in thousands) |  | 2019 |  | 2018
Deferred tax assets: |  |  |  |
Tax loss carryforwards |  | $ | 34,357 |  |  | $ | 30,689 |
Share-based compensation |  | 7,366 |  |  | 7,395 |
Accrued expenses |  | 19,048 |  |  | 17,242 |
Property and equipment |  | 8,602 |  |  | 16,377 |
Goodwill and intangible amortization |  | 8,143 |  |  | 10,619 |
Intercompany notes |  | 5,977 |  |  | 6,913 |
Accrued revenue |  | 24,721 |  |  | 36,273 |
Tax credits |  | 65,063 |  |  | — |
Lease accounting |  | 89,965 |  |  | — |
Other |  | 15,379 |  |  | 11,876 |
Gross deferred tax assets |  | 278,621 |  |  | 137,384 |
Valuation allowance |  | (83,184 | ) |  | (21,857 | )
Net deferred tax assets |  | 195,437 |  |  | 115,527 |
Deferred tax liabilities: |  |  |  |  |  |
Intangible assets related to purchase accounting |  | (16,379 | ) |  | (22,877 | )
Goodwill and intangible amortization |  | (20,806 | ) |  | (16,115 | )
Accrued expenses |  | (29,084 | ) |  | (28,274 | )
Intercompany notes |  | (10,498 | ) |  | (14,034 | )
Accrued interest |  | (27,902 | ) |  | (32,372 | )
Capitalized research and development |  | (6,048 | ) |  | (8,299 | )
Property and equipment |  | (15,467 | ) |  | (8,408 | )
Accrued revenue |  | (4,727 | ) |  | (4,388 | )
Lease accounting |  | (89,965 | ) |  | — |
Other |  | (8,997 | ) |  | (5,841 | )
Total deferred tax liabilities |  | (229,873 | ) |  | (140,608 | )
Net deferred tax liabilities |  | $ | (34,436 | ) |  | $ | (25,081 | )
Subsequently recognized tax benefits relating to the valuation allowance for deferred tax assets as of December 31, 2019 are expected to be allocated to income taxes in the Consolidated Statements of Income. As of December 31, 2019, and 2018, the Company's foreign tax loss carryforwards were $119.1 million and $109.8 million, respectively, and U.S. state tax loss carryforwards were $97.6 million and $91.8 million, respectively. In 2019, the Company has recognized $59.1 million in U.S. foreign tax credits which are largely not expected to be utilized in future periods. In assessing the Company's ability to realize deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not the Company will only realize the benefits of these deductible differences, net of the existing valuation allowances, as of December 31, 2019. As of December 31, 2019, the Company had foreign tax net operating loss carryforwards of $119.1 million, which will expire as follows:
(in thousands) |  | Gross |  | Tax Effected
Year ending December 31, |  |  |  |
2020 |  | $ | 1,274 |  |  | $ | 315 |
2021 |  | 3,790 |  |  | 934 |
2022 |  | 2,800 |  |  | 720 |
2023 |  | 2,577 |  |  | 605 |
2024 |  | 8,713 |  |  | 2,152 |
Thereafter |  | 39,040 |  |  | 9,851 |
Unlimited |  | 60,935 |  |  | 14,427 |
Total |  | $ | 119,129 |  |  | $ | 29,004 |
In addition, the Company's state tax net operating loss carryforwards of $97.6 million will expire periodically from 2020 through 2039, U.S. foreign tax credit carryforwards of $59.1 million that will expire periodically from 2021 through 2027, U.S. research and expenditure credit carryforwards of $3.2 million that will expire over an indefinite number of years, and foreign tax credits of $2.8 million that will expire over an indefinite number of years. While U.S. tax expense has been recognized as a result of the transition tax and Global Intangible Low-Taxed Income ("GILTI") provisions of U.S. Tax Reform, the Company has not provided additional deferred taxes with respect to items such as certain foreign exchange gains or losses, foreign withholding taxes or additional state taxes, if any, on undistributed earnings attributable to foreign subsidiaries and it is not practical to determine the income tax liability that would be payable if such earnings were not reinvested indefinitely. Gross undistributed earnings reinvested indefinitely in foreign subsidiaries aggregated approximately $1,810 million as of December 31, 2019. Accounting for uncertainty in income taxes A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2019 and 2018 is as follows:
|  | Year Ended December 31,
(in thousands) |  | 2019 |  | 2018
Beginning balance |  | $ | 30,915 |  |  | $ | 28,537 |
Additions based on tax positions related to the current year |  | 15,569 |  |  | 4,787 |
Additions for tax positions of prior years |  | 6 |  |  | 966 |
Reductions for tax positions of prior years |  | (1,703 | ) |  | (1,705 | )
Settlements |  | — |  |  | (807 | )
Statute of limitations expiration |  | (252 | ) |  | (863 | )
Ending balance |  | $ | 44,535 |  |  | $ | 30,915 |
As of December 31, 2019 and 2018, approximately $42.7 million and $28.0 million, respectively, of the unrecognized tax benefits would impact the Company's provision for income taxes and effective income tax rate, if recognized. Total estimated accrued interest and penalties related to the underpayment of income taxes was $5.2 million and $4.4 million as of December 31, 2019 and 2018, respectively. The following income tax years remain open in the Company's major jurisdictions as of December 31, 2019:
Jurisdictions | Periods
U.S. (Federal) | 2014 through 2019
Germany | 2016 through 2019
Greece | 2014 through 2019
Spain | 2014 through 2019
U.K. | 2009 through 2019
It is reasonably possible that the balance of gross unrecognized tax benefits could significantly change within the next twelve months as a result of the resolution of audit examinations and expirations of certain statutes of limitations and, accordingly, materially affect the Company's operating results. At this time, it is not possible to estimate the range of change due to the uncertainty of potential outcomes.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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