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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Provision for Federal and Foreign Income Tax Expense for Continuing Operations | The Company’s provision for federal and foreign income tax expense for continuing operations consisted of the following:
|  | Year Ended December 31, |
|  | 2018 |  |  | 2019 |  |  | 2020 |
Income (loss) before income taxes: |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 289,727 |  |  | $ | 235,571 |  |  | $ | (784,167 | )
Foreign |  |  | 21,007 |  |  |  | 38,189 |  |  |  | (143,157 | )
Total |  | $ | 310,734 |  |  | $ | 273,760 |  |  | $ | (927,324 | )
Current and Deferred Income Taxes | Current and deferred income taxes were as follows:
|  | Year Ended December 31, |
|  | 2018 |  |  | 2019 |  |  | 2020 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 46,826 |  |  | $ | 45,247 |  |  | $ | (271,162 | )
Foreign |  |  | 11,822 |  |  |  | 24,022 |  |  |  | 397 |
State |  |  | 13,594 |  |  |  | 12,486 |  |  |  | 289 |
Total current expense |  | $ | 72,242 |  |  | $ | 81,755 |  |  | $ | (270,476 | )
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 27,055 |  |  | $ | (298 | ) |  | $ | (50,445 | )
Foreign |  |  | (6,166 | ) |  |  | 5 |  |  |  | 13,266 |
State |  |  | 2,298 |  |  |  | (1,550 | ) |  |  | (1,721 | )
Total deferred taxes |  | $ | 23,187 |  |  | $ | (1,843 | ) |  | $ | (38,900 | )
Income taxes |  | $ | 95,429 |  |  | $ | 79,912 |  |  | $ | (309,376 | )
Reconciliation Between Income Tax Expense and Taxes Computed | A reconciliation between income tax expense and taxes computed by applying the applicable statutory federal income tax rate to income before income taxes follows:
|  | Year Ended December 31, |
|  | 2018 |  |  | 2019 |  |  | 2020 |
Computed statutory tax expense |  | $ | 65,254 |  |  | $ | 57,490 |  |  | $ | (194,739 | )
State and local income taxes, net of federal income tax impact |  |  | 12,611 |  |  |  | 8,479 |  |  |  | (1,153 | )
Changes in valuation allowance |  | 131 |  |  |  | 2,532 |  |  |  | 46,731 |
Foreign tax rate differential |  |  | 2,235 |  |  |  | 4,646 |  |  |  | (6,633 | )
Foreign dividends |  | — |  |  | — |  |  | — |
Foreign tax credits |  |  | 3,927 |  |  |  | 4,143 |  |  | — |
Impacts related to 2017 Tax Act (1) |  |  | 19,180 |  |  | — |  |  | — |
Impacts related to COVID-19 pandemic (2) |  | — |  |  | — |  |  |  | (187,515 | )
Changes in uncertain tax positions |  |  | (6,139 | ) |  |  | 197 |  |  |  | 24,879 |
Other, net |  |  | (1,770 | ) |  |  | 2,425 |  |  |  | 9,054 |
Income taxes |  | $ | 95,429 |  |  | $ | 79,912 |  |  | $ | (309,376 | )
(1) | The amount for the year ended December 31, 2018 includes a one-time charge to true-up deferred taxes of $1,913 and a reduction in deferred tax assets with regard to foreign tax credit carryforwards of $17,267.
(2) | The amount for the year ended December 31, 2020 includes benefits of a rate differential on earnings of $122,975, tax losses with respect to investments in foreign subsidiaries and a write down of certain intercompany receivables associated with the Company’s foreign subsidiaries of $135,599, offset by a tax charge for the remeasurement of deferred taxes and tax attributes of $49,866 and dislodged foreign tax credits not benefited of $21,193.
Tax Effects of Significant Temporary Differences and Tax Loss and Tax Credit Carryforwards | The tax effects of significant temporary differences and tax loss and tax credit carryforwards comprising the net long-term deferred income tax liabilities as of the periods presented consisted of the following:
|  | December 31, |
|  | 2019 |  |  | 2020 |
Deferred liabilities: |  |  |  |  |  |  |  |
Theatre properties and equipment |  | $ | 138,382 |  |  | $ | 142,253 |
Operating lease right-of-use assets |  |  | 322,750 |  |  |  | 297,452 |
Intangible asset — other |  |  | 39,282 |  |  |  | 41,297 |
Intangible asset — tradenames |  |  | 72,821 |  |  |  | 72,268 |
Investment in partnerships |  |  | 62,914 |  |  |  | 20,402 |
Total deferred liabilities |  |  | 636,149 |  |  |  | 573,672 |
Deferred assets: |  |  |  |  |  |  |  |
Deferred revenue - NCM |  |  | 85,362 |  |  |  | 83,998 |
Deferred revenue - Other |  |  | 9,953 |  |  |  | 6,208 |
Prepaid rent |  |  | 5,672 |  |  |  | 5,255 |
Gift Cards |  |  | 7,402 |  |  |  | 9,265 |
Operating lease obligations |  |  | 336,034 |  |  |  | 313,552 |
Finance lease obligations |  |  | 34,956 |  |  |  | 31,284 |
Tax impact of items in accumulated other comprehensive income and additional paid-in-capital |  |  | 5,131 |  |  |  | 19,475 |
Other tax loss carryforwards |  |  | 17,053 |  |  |  | 89,320 |
Other tax credit and attribute carryforwards |  |  | 46,577 |  |  |  | 121,698 |
Other expenses, not currently deductible for tax purposes |  |  | 15,901 |  |  |  | 17,698 |
Total deferred assets |  |  | 564,041 |  |  |  | 697,753 |
Net deferred income tax (asset) liability before valuation allowance |  |  | 72,108 |  |  |  | (124,081 | )
Valuation allowance against deferred assets – non-current |  |  | 60,359 |  |  |  | 203,606 |
Net deferred income tax liability |  | $ | 132,467 |  |  | $ | 79,525 |
Net deferred tax (asset) liability — Foreign |  | $ | (4,539 | ) |  | $ | 7,280 |
Net deferred tax liability — U.S. |  |  | 137,006 |  |  |  | 72,245 |
Total |  | $ | 132,467 |  |  | $ | 79,525 |
Reconciliation of Total Amounts of Unrecognized Tax Benefits Excluding Interest and Penalties | The following is a reconciliation of the total amounts of unrecognized tax benefits excluding interest and penalties, for the periods presented:
|  | Year Ended December 31, |
|  | 2018 |  |  | 2019 |  |  | 2020 |
Balance at January 1, |  | $ | 18,266 |  |  | $ | 10,561 |  |  | $ | 10,235 |
Gross increases - tax positions in prior periods |  |  | — |  |  | 1 |  |  |  | 32,417 |
Gross decreases - tax positions in prior periods |  |  | (143 | ) |  |  | — |  |  |  | (88 | )
Gross increases - current period tax positions |  |  | 424 |  |  |  | 202 |  |  |  | 4,010 |
Settlements |  |  | (7,191 | ) |  |  | (522 | ) |  |  | — |
Foreign currency translation adjustments |  |  | (795 | ) |  |  | (7 | ) |  |  | (46 | )
Balance at December 31, |  | $ | 10,561 |  |  | $ | 10,235 |  |  | $ | 46,528 |

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