Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Components of Income Before Provision for Income Taxes

The components of income before provision for income taxes consisted of the following (dollars in thousands):

	Year Ended December 31,
	2021		2020		2019
Domestic	$	1,683,710	$	470,181	$	839,899
Foreign	725,711		499,788		521,446
Total	$	2,409,421	$	969,969	$	1,361,345

Tax Provision (Benefit)

Our tax provision (benefit) consisted of the following (dollars in thousands):

	Year Ended December 31,
	2021		2020		2019
Current provision:
Federal	$	274,987	$	18,951	$	(51,980)
State	115,196		33,291		52,403
Foreign	238,273		88,994		163,833
Total current provision	628,456		141,236		164,256
Deferred provision:
Federal	34,607		61,034		(74,432)
State	(4,395)		3,872		(5,760)
Foreign	(91,162)		7,959		(14,169)
Total deferred provision	(60,950)		72,865		(94,361)
Total provision for income taxes	$	567,506	$	214,101	$	69,895

Reconciliation of Pre-Tax Income

The following is a reconciliation stated as a percentage of pre-tax income of the U.S. statutory federal income tax rate to our effective tax rate:

	Year Ended December 31,
	2021		2020		2019
Federal statutory tax rate	21	%	21	%	21	%
Foreign rate differential	—		—		4
State taxes, net of federal benefit	4		3		3
Non-deductible expenses	—		1		1
Reserves for uncertain tax positions	1		—		1
Credits and exemptions	(1)		(2)		(4)
Outside basis differences recognized as a result of a legal entity restructuring	—		—		(20)
Other	(1)		(1)		(1)
Effective tax rate	24	%	22	%	5	%

Temporary Tax Effects

Cumulative tax effects of temporary differences are shown below (dollars in thousands):

	December 31,
	2021		2020
Assets:
Tax losses and tax credits	$	307,507	$	334,303
Operating lease liabilities	269,960		358,066
Bonus and deferred compensation	381,408		295,690
Bad debt and other reserves	65,188		73,061
Pension obligation	5,007		18,026
All other	65,710		24,623
Deferred tax assets, before valuation allowance	$	1,094,781	$	1,103,769
Less: Valuation allowance	(273,256)		(291,096)
Deferred tax assets	$	821,525	$	812,673
Liabilities:
Tax effect on revenue items related to Topic 606 adoption	$	—	$	(16,784)
Property and equipment	(92,166)		(88,595)
Unconsolidated affiliates and partnerships	(128,170)		(59,544)
Capitalized costs and intangibles	(583,219)		(313,099)
Operating lease assets	(240,261)		(366,671)
All other	(25,935)		(936)
Deferred tax liabilities	$	(1,069,751)	$	(845,629)
Net deferred tax liabilities	$	(248,226)	$	(32,956)

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (dollars in thousands):

	Year Ended December 31,
	2021		2020
Beginning balance, unrecognized tax benefits	$	(168,516)	$	(141,164)
Gross increases - tax positions in prior period	(4,478)		(31,070)
Gross decreases - tax positions in prior period	2,675		1,530
Gross increases - current-period tax positions	(25,619)		(9,688)
Decreases relating to settlements	390		—
Reductions as a result of lapse of statute of limitations	3,610		11,791
Foreign exchange movement	—		85
Ending balance, unrecognized tax benefits	$	(191,938)	$	(168,516)