Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Domestic and Foreign Income (Loss) from Continuing Operations Before Income Taxes

The following table summarizes our U.S. and foreign income (loss) from continuing operations before income taxes:

	Year Ended December 31,
	2012			2011		2010
	(In thousands)
U.S.	$	(20,097	)	$	112,210	$	286,326
Foreign		370,154			289,862		139,513
Total	$	350,057		$	402,072	$	425,839

Components of Income Tax Expense Attributable to Continuing Operations

The following table summarizes our provision for income taxes from continuing operations:

	Year Ended December 31,
	2012			2011			2010
				(In thousands)
Current income tax expense:
Federal	$	56,501		$	23,933		$	72,807
State		(24	)		7,803			7,351
Foreign		45,721			34,053			21,003
Current income tax expense		102,198			65,789			101,161
Deferred income tax (benefit) expense:
Federal	$	(33,724	)	$	19,837		$	25,122
State		578			322			(2,353	)
Foreign		(21,974	)		(10,217	)		(3,588	)
Deferred income tax (benefit) expense:		(55,120	)		9,942			19,181
Income tax expense	$	47,078		$	75,731		$	120,342

Components of Deferred Tax Assets and Deferred Tax Liabilities

As of December 31, 2012 and 2011, the significant components of our deferred tax assets and deferred tax liabilities were as follows:

	December 31,
	2012			2011
	(In thousands)
Deferred tax assets:
Provision for accrued expenses	$	76,538		$	48,382
Occupancy tax reserve		52,624			15,322
Net operating loss and tax credit carryforwards		32,765			28,430
Stock-based compensation		29,330			45,149
Other		31,683			23,546
Total deferred tax assets		222,940			160,829
Less valuation allowance		(12,695	)		(23,422	)
Net deferred tax assets	$	210,245		$	137,407
Deferred tax liabilities:
Prepaid merchant bookings and prepaid expenses	$	(49,859	)	$	(59,333	)
Intangible assets		(282,570	)		(249,729	)
Investment in subsidiaries		(8,009	)		(9,603	)
Unrealized gains		(15,396	)		(13,106	)
Property and equipment		(93,867	)		(69,581	)
Other		(1,276	)		(534	)
Total deferred tax liabilities	$	(450,977	)	$	(401,886	)
Net deferred tax liability	$	(240,732	)	$	(264,479	)

Schedule of Statutory Federal Income Tax Rate to Income from Continuing Operations before Income Taxes

A reconciliation of amounts computed by applying the statutory federal income tax rate to income from continuing operations before income taxes to total income tax expense is as follows:

	Year Ended December 31,
	2012			2011			2010
				(In thousands)
Income tax expense at the federal statutory rate of 35%	$	122,520		$	140,725		$	149,050
Foreign rate differential		(78,094	)		(74,431	)		(27,921	)
State income taxes, net of effect of federal tax benefit		1,280			5,262			4,290
Unrecognized tax benefits and related interest		16,038			8,297			(6,514	)
Change in valuation allowance		(11,838	)		(7,740	)		(3,000	)
Other, net		(2,828	)		3,618			4,437
Income tax expense	$	47,078		$	75,731		$	120,342

Income Tax Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits

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

	2012			2011			2010
				(In thousands)
Balance, beginning of year	$	81,682		$	68,536		$	187,075
Increases to tax positions related to the current year		20,453			15,679			12,414
Increases to tax positions related to prior years		4,837			1,047			1,207
Decreases to tax positions related to prior years		(304	)		(2,142	)		(95,687	)
Reductions due to lapsed statute of limitations		(5,061	)		(3,352	)		(25,048	)
Settlements during current year		(607	)		—			(913	)
Interest and penalties		1,305			1,914			(10,512	)
Balance, end of year	$	102,305		$	81,682		$	68,536