Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income before income taxes attributable to geographic locations

Income before income taxes is attributable to the following geographic locations for the years ended December 31, (in thousands):

	2021		2020		2019
Domestic	$	137,492	$	18,395	$	328,806
Foreign	471,460		497,830		363,791
Income before income taxes	$	608,952	$	516,225	$	692,597

Components of tax benefit (expenses) for income taxes

The tax benefit (expenses) for income taxes consisted of the following components for the years ended December 31, (in thousands):

	2021		2020		2019
Current:
Federal	$	7,753	$	4,552	$	(17,906)
State and local	(156)		1,597		(4,624)
Foreign	(76,450)		(171,092)		(135,356)
Subtotal	(68,853)		(164,943)		(157,886)
Deferred:
Federal	11,060		16,553		(7,459)
State and local	(1,411)		704		(1,775)
Foreign	(50,020)		1,535		(18,232)
Subtotal	(40,371)		18,792		(27,466)
Income tax expense	$	(109,224)	$	(146,151)	$	(185,352)

Income tax reconciliation

The fiscal 2021, 2020, and 2019 income tax benefit (expenses) differed from the amounts computed by applying the U.S. federal income tax rate of 21% to pre-tax income as a result of the following for the years ended December 31 (in thousands):

	2021		2020		2019
Federal tax at statutory rate	$	(127,880)	$	(109,906)	$	(145,445)
State and local tax (expense) benefit	(1,513)		2,071		(5,852)
Deferred tax assets generated in current year not benefited	(19,703)		(12,852)		(5,398)
Foreign income tax rate differential	(18,918)		(16,364)		(11,610)
Non-deductible expenses	(10,579)		(4,427)		(1,021)
Stock-based compensation expense	(1,385)		(954)		(2,105)
Change in valuation allowance	(595)		390		(2,870)
Foreign financing activities	(4,805)		(11,743)		(18,738)
Loss on divestments	—		—		(3,277)
Uncertain tax positions reserve	50,059		(38,014)		(35,724)
Tax adjustments related to REIT	39,164		50,107		63,614
Change in deferred tax adjustments	(1,251)		(136)		(10,574)
Effect of tax rate change on deferred tax assets	(12,297)		—		—
Other, net	479		(4,323)		(6,352)
Total income tax expense	$	(109,224)	$	(146,151)	$	(185,352)

Schedule of deferred tax assets and liabilities

The types of temporary differences that give rise to significant portions of our deferred tax assets and liabilities are set out below as of December 31 (in thousands):

	2021		2020 (1)
Deferred tax assets:
Stock-based compensation expense	$	9,057	$	5,583
Net unrealized losses	—		17,268
Operating lease liabilities	225,261		187,912
Capital lease liabilities	13,927		26,655
Deferred revenue	14,429		10,785
Loss carryforwards and tax credits	201,132		117,150
Others, net	7,257		4,296
Gross deferred tax assets	471,063		369,649
Valuation allowance	(100,746)		(82,344)
Total deferred tax assets, net	370,317		287,305
Deferred tax liabilities:
Net unrealized gains	(1,462)		—
Property, plant and equipment	(262,532)		(145,314)
Right-of-use assets	(233,199)		(201,714)
Deferred income	(33,052)		(31,538)
Intangible assets	(120,543)		(132,681)
Total deferred tax liabilities	(650,788)		(511,247)
Net deferred tax liabilities	$	(280,471)	$	(223,942)

(1) The prior year amounts presented in the table above have been reclassified to conform with the current year presentation.

Changes in valuation allowance for deferred tax assets

Changes in the valuation allowance for deferred tax assets for the years ended December 31, 2021, 2020 and 2019 are as follows (in thousands):

	2021		2020		2019
Beginning balance	$	82,344	$	57,812	$	57,003
Amounts from acquisitions	964		5,777		(2,707)
Divested balances	—		—		(351)
Amounts recognized into income	595		(390)		2,870
Current increase	19,539		15,044		697
Impact of foreign currency exchange	(2,696)		4,101		300
Ending balance	$	100,746	$	82,344	$	57,812

Schedule of net operating loss carryforwards

Our NOL carryforwards for federal, state and foreign tax purposes which expire, if not utilized, at various intervals from 2022, are outlined below (in thousands):

Expiration Date	Federal (1)		State		Foreign (2) (3)		Total
2022	$	20,808	$	—	$	754	$	21,562
2023 to 2025	26,838		112		25,876		52,826
2026 to 2028	12,186		—		12,560		24,746
2029 to 2031	—		767		32,849		33,616
2032 to 2034	394		822		—		1,216
2035 to 2037	6,739		2,491		3,838		13,068
Thereafter	437,683		80,613		488,897		1,007,193
	$	504,648	$	84,805	$	564,774	$	1,154,227

(1)The total amount of NOL carryforwards that will not be available to offset our future taxable income after the dividends paid deduction due to Section 382 limitations was $56.7 million for federal.

(2)In certain jurisdictions, the net operating loss carryforwards can only be used to offset a percentage of taxable income in a given year.

(3)If certain substantial changes in the entity's ownership occur or have determined to have occurred, there may be a limitation on the amount of the carryforwards that can be utilized.

Reconciliation of unrecognized tax benefits

The beginning and ending balances of our unrecognized tax benefits are reconciled below for the years ended December 31 (in thousands):

	2021		2020		2019
Beginning balance	$	207,759	$	173,726	$	150,930
Gross increases related to prior year tax positions	4,547		14,732		—
Gross decreases related to prior year tax positions	(58,356)		—		(1,160)
Gross increases related to current year tax positions	10,000		29,149		31,332
Decreases resulting from expiration of statute of limitation	(10,561)		(6,518)		(2,112)
Decreases resulting from settlements	(5,089)		(3,330)		(5,264)
Ending balance	$	148,300	$	207,759	$	173,726