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Income Taxes | 12 Months Ended
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Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The provision (benefit) for income taxes for the years ended December 31, 2018, 2017 and 2016, consisted of the following (in thousands):
|  | Years Ended December 31,
|  | 2018 |  | 2017 |  | 2016
Current: |  |  |  |  |  |
Federal |  | $ | 99,830 |  |  | $ | 133,097 |  |  | $ | 156,937 |
State |  | 38,356 |  |  | 24,944 |  |  | 34,927 |
Foreign |  | 35,007 |  |  | 27,079 |  |  | 20,725 |
Deferred: |  |  |  |  |  |
Federal and state |  | (15,849 | ) |  | 41,717 |  |  | (3,785 | )
Foreign |  | (30 | ) |  | 95 |  |  | 1,917 |
|  | $ | 157,314 |  |  | $ | 226,932 |  |  | $ | 210,721 |
Income before the provision for income taxes for the years ended December 31, 2018, 2017 and 2016, consisted of the following (in thousands):
|  | Years Ended December 31,
|  | 2018 |  | 2017 |  | 2016
Domestic |  | $ | 485,489 |  |  | $ | 445,418 |  |  | $ | 494,890 |
Foreign |  | 106,113 |  |  | 72,098 |  |  | 59,220 |
|  | $ | 591,602 |  |  | $ | 517,516 |  |  | $ | 554,110 |
The income taxes shown above varied from the statutory federal income tax rates for these periods as follows:
|  | Years Ended December 31,
|  | 2018 |  | 2017 |  | 2016
Federal U.S. income tax rate |  | 21.0 | % |  | 35.0 | % |  | 35.0 | %
State income taxes, net of federal tax benefit |  | 4.7 |  |  | 3.7 |  |  | 4.2 |
Permanent book/tax differences |  | 0.6 |  |  | 0.4 |  |  | 0.5 |
Non-U.S. income taxed at different rates, net of foreign tax credits |  | 2.0 |  |  | — |  |  | (0.6 | )
Federal tax credits |  | (1.7 | ) |  | (1.3 | ) |  | (0.8 | )
Tax impact of uncertain tax positions |  | 0.8 |  |  | 0.2 |  |  | — |
Valuation allowance release, net |  | — |  |  | — |  |  | (0.1 | )
Tax effects of TCJA |  | 0.4 |  |  | 6.5 |  |  | — |
Other, net |  | (1.2 | ) |  | (0.6 | ) |  | (0.2 | )
Effective tax rate |  | 26.6 | % |  | 43.9 | % |  | 38.0 | %
The deferred portion of the tax (benefit) provision consisted of the following (in thousands):
|  | Years Ended December 31,
|  | 2018 |  | 2017 |  | 2016
Accrued expenses, deducted for tax when paid |  | $ | (21,884 | ) |  | $ | 15,213 |  |  | $ | (6,889 | )
Capitalized costs for books, deducted for tax |  | (4,832 | ) |  | (5,790 | ) |  | 5,901 |
Depreciation |  | 10,071 |  |  | (4,079 | ) |  | (2,405 | )
Tax effects of TCJA |  | — |  |  | 34,633 |  |  | — |
Other, net |  | 766 |  |  | 1,835 |  |  | 1,525 |
|  | $ | (15,879 | ) |  | $ | 41,812 |  |  | $ | (1,868 | )
The components of the deferred income tax amounts at December 31, 2018 and 2017, were as follows (in thousands):
|  | December 31,
|  | 2018 |  | 2017
Deferred Income Tax Assets |  |  |  |
Deferred compensation and other benefit obligations |  | $ | 87,513 |  |  | $ | 68,101 |
Credits and net operating loss carryforwards |  | 31,169 |  |  | 30,087 |
Stock-based compensation |  | 9,535 |  |  | 8,614 |
Provision for bad debts |  | 7,891 |  |  | 6,794 |
Workers’ compensation |  | 3,580 |  |  | 3,127 |
Other |  | 14,959 |  |  | 13,343 |
Total deferred income tax assets |  | 154,647 |  |  | 130,066 |
Deferred Income Tax Liabilities |  |  |  |
Amortization of intangible assets |  | (21,210 | ) |  | (20,220 | )
Property and equipment basis differences |  | (9,761 | ) |  | (4,421 | )
Other |  | (10,319 | ) |  | (10,847 | )
Total deferred income tax liabilities |  | (41,290 | ) |  | (35,488 | )
Valuation allowance |  | (23,072 | ) |  | (20,178 | )
Total deferred income tax assets, net |  | $ | 90,285 |  |  | $ | 74,400 |
Credits and net operating loss carryforwards primarily include net operating losses in foreign countries of $27.7 million that expire in 2019 and later; and California enterprise zone tax credits of $2.9 million that expire in 2023. Of the $2.9 million of California enterprise zone tax credits, the Company expects that it will utilize $1.2 million of these credits prior to expiration. Valuation allowances of $21.4 million have been maintained against net operating loss carryforwards and other deferred items in foreign countries. In addition, a valuation allowance of $1.7 million has been maintained against California enterprise zone tax credits. As of December 31, 2018, the Company’s consolidated financial statements provide for any related U.S. tax liability on earnings of foreign subsidiaries that may be repatriated, aside from undistributed earnings of certain of the Company’s foreign subsidiaries that are intended to be indefinitely reinvested in operations outside the United States. The following table reconciles the total amounts of gross unrecognized tax benefits from January 1, 2016 to December 31, 2018 (in thousands):
|  | December 31,
|  | 2018 |  | 2017 |  | 2016
Balance at beginning of period |  | $ | 2,886 |  |  | $ | 731 |  |  | $ | 814 |
Gross increases—tax positions in prior years |  | 3,259 |  |  | 1,503 |  |  | 92 |
Gross decreases—tax positions in prior years |  | (8 | ) |  | (257 | ) |  | — |
Gross increases—tax positions in current year |  | 2,284 |  |  | 956 |  |  | 114 |
Settlements |  | — |  |  | (40 | ) |  | — |
Lapse of statute of limitations |  | (3 | ) |  | (7 | ) |  | (289 | )
Balance at end of period |  | $ | 8,418 |  |  | $ | 2,886 |  |  | $ | 731 |
The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate is $8.3 million, $2.8 million and $0.5 million for 2018, 2017 and 2016, respectively. The Company’s continuing practice is to recognize interest and penalties related to income tax matters in income tax expense. The total amount of interest and penalties accrued as of December 31, 2018 is $0.3 million, including a $0.2 million increase recorded in income tax expense during the year. The total amount of interest and penalties accrued as of December 31, 2017 was $0.1 million. The total amount of interest and penalties accrued as of December 31, 2016, was $0.1 million, including a $0.1 million reduction recorded in income tax expense during the year. The Company believes it is reasonably possible that the settlement of certain tax uncertainties could occur within the next twelve months; accordingly, $0.1 million of the unrecognized gross tax benefit has been classified as a current liability as of December 31, 2018. This amount primarily represents unrecognized tax benefits composed of items related to assessed state income tax audits and negotiations. The Company’s major income tax jurisdictions are the United States, Australia, Belgium, Canada, France, Germany and the United Kingdom. For U.S. federal income tax, the Company remains subject to examination for 2015 and subsequent years. For major U.S. states, with few exceptions, the Company remains subject to examination for 2014 and subsequent years. Generally, for the foreign countries, the Company remains subject to examination for 2011 and subsequent years.

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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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