Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.19.3.a.u2
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Significant Components of the Provision for Income Tax Expense (Benefit)
Significant components of the provision for income tax expense (benefit) are as follows:
Year Ended December 31,
2019 2018 2017
(in thousands)
Current:
  Federal $ —    $ (55)   $ (702)  
  Foreign 61,834    40,239    50,970   
  State 5,523    6,828    4,117   
Total current 67,357    47,012    54,385   
Deferred:
  Federal 5,314    2,246    (56,442)  
  Foreign (6,345)   (8,697)   (15,841)  
  State 566    204    744   
Total deferred (465)   (6,247)   (71,539)  
Income tax expense (benefit) $ 66,892    $ 40,765    $ (17,154)  
Significant Components of Deferred Tax Liabilities and Assets
Significant components of our deferred tax liabilities and assets are as follows:
December 31,
2019 2018
(in thousands)
Deferred tax liabilities:
          Leases $ 192,870    $ —   
          Intangible assets 161,843    118,275   
          Prepaid expenses 5,876    2,534   
          Other 19,186    5,865   
Total deferred tax liabilities 379,775    126,674   
Deferred tax assets:
          Intangible assets 40,926    25,981   
          Accrued expenses 60,479    40,989   
          Net operating loss carryforwards 488,081    388,459   
          Foreign tax and other credit carryforwards 47,215    38,919   
          Equity compensation 22,503    24,211   
           Leases 211,206    —   
          Other 12,751    15,703   
Total gross deferred tax assets 883,161    534,262   
          Valuation allowance 667,242    530,642   
          Total deferred tax assets 215,919    3,620   
          Net deferred tax liabilities $ (163,856)   $ (123,054)  
Reconciliation of Income Taxes at the United States Statutory Rate to Income Tax Expense
The reconciliation of income tax computed at the United States federal statutory rates to income tax expense (benefit) is:
Year Ended December 31,
2019 2018 2017
(in thousands)
Income tax expense (benefit) at United States statutory rates (21%, 21% and 35%, respectively)
 $ 38,872    $ 27,532    $ (3,283)  
State income taxes, net of federal tax benefits 3,137    4,860    1,544   
Differences between foreign and United States statutory rates
 6,384    2,650    (10,887)  
United States tax reform rate change —    —    (55,685)  
Non-United States income inclusions and exclusions (3,222)   (3,425)   3,826   
United States income inclusions and exclusions (2,582)   (13,790)   11,347   
Nondeductible items 10,118    26,376    11,380   
Tax contingencies (1,340)   389    1,955   
Tax expense from acquired goodwill 6,107    4,353    4,489   
Change in valuation allowance 8,536    (8,845)   18,067   
Other, net 882    665    93   
$ 66,892    $ 40,765    $ (17,154)  
Summary of Activity Related to Unrecognized Tax Benefits
The following table summarizes the activity related to the Company’s unrecognized tax benefits:
Year Ended December 31,
2019 2018 2017
(in thousands)
Balance at January 1 $ 34,071    $ 30,630    $ 15,117   
Additions:
          Increase for current year positions 2,215    1,531    807   
          Increase for prior year positions 1,898    2,995    15,498   
          Interest and penalties for prior years 458    106    2,745   
Reductions:
          Decrease for prior year positions (3,272)   —    —   
          Expiration of applicable statute of limitations —    (730)   (1,233)  
          Settlements for prior year positions (13,852)   (9)   (2,033)  
Foreign exchange 205    (452)   (271)  
Balance at December 31 $ 21,723    $ 34,071    $ 30,630