Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Earnings Before Income Taxes and Income Tax Expense

Earnings before income taxes and income tax expense consist of:

	Years Ended December 31,
	2018			2017		2016
	(in thousands)
Earnings before income taxes:
United States	$	672,221		$	634,515	$	614,261
Foreign	153,093			139,395		108,904
Total	$	825,314		$	773,910	$	723,165
Income tax expense:
Partnership UBT	$	5,251		$	2,986	$	5,363
Corporate subsidiaries:
Federal	(4,030		)	18,079		291
State and local	2,888			803		1,064
Foreign	36,529			29,365		28,158
Current tax expense	40,638			51,233		34,876
Deferred tax (benefit)	5,178			1,877		(6,557		)
Income tax expense	$	45,816		$	53,110	$	28,319

Difference Between the Effective Tax Rates and UBT Statutory Tax Rate

The principal reasons for the difference between the effective tax rates and the UBT statutory tax rate of 4.0% are as follows:

	Years Ended December 31,
	2018					2017					2016
	(in thousands)
UBT statutory rate	$	33,012		4.0	%	$	30,956		4.0	%	$	28,927		4.0	%
Corporate subsidiaries' federal, state, and local	1,522			0.2		2,558			0.3		5,820			0.8
Foreign subsidiaries taxed at different rates	30,689			3.7		25,406			3.3		23,646			3.3
2017 Tax Act	1,155			0.1		25,846			3.3		—			—
FIN 48 release	(5,177		)	(0.6	)	(3,318		)	(0.4	)	—			—
UBT business allocation percentage rate change	2,657			0.3		—			—		—			—
Deferred tax and payable write-offs	2,932			0.4		(9,542		)	(1.2	)	(14,883		)	(2.1	)
Foreign outside basis difference	2,273			0.3		—			—		—			—
Effect of ASC 740 adjustments, miscellaneous taxes, and other	(2,521		)	(0.3	)	1,903			0.2		2,254			0.3
Income not taxable resulting from use of UBT business apportionment factors and effect of compensation charge	(20,726		)	(2.5	)	(20,699		)	(2.6	)	(17,445		)	(2.4	)
Income tax expense and effective tax rate	$	45,816		5.6		$	53,110		6.9		$	28,319		3.9

Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Years Ended December 31,
	2018			2017			2016
	(in thousands)
Balance as of beginning of period	$	8,478		$	12,596		$	12,004
Additions for prior year tax positions	—			—			—
Reductions for prior year tax positions	—			(1,849		)	—
Additions for current year tax positions	—			—			592
Reductions for current year tax positions	—			—			—
Reductions related to closed years/settlements with tax authorities	(4,585		)	(2,269		)	—
Balance as of end of period	$	3,893		$	8,478		$	12,596

Tax Effect of Significant Items Comprising the Net Deferred Tax Asset (Liability)

The tax effect of significant items comprising the net deferred tax asset (liability) is as follows:

	December 31,
	2018			2017
	(in thousands)
Deferred tax asset:
Differences between book and tax basis:
Benefits from net operating loss carryforwards	$	2,518		$	3,405
Long-term incentive compensation plans	22,342			21,204
Investment basis differences	3,606			5,967
Depreciation and amortization	1,248			2,214
Other, primarily accrued expenses deductible when paid	3,903			3,601
	33,617			36,391
Less: valuation allowance	(490		)	(497		)
Deferred tax asset	33,127			35,894
Deferred tax liability:
Differences between book and tax basis:
Intangible assets	6,852			6,286
Investment in foreign subsidiaries	1,653			—
Other	1,758			1,007
Deferred tax liability	10,263			7,293
Net deferred tax asset	$	22,864		$	28,601