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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Summary of Provision for Income Taxes (Benefits) by Taxing Jurisdiction

The provision for income taxes (benefits) by taxing jurisdiction consisted of:

	Years Ended
	December 31,			December 31,			December 31,
	2021			2020			2019
	(in thousands)
Current
U.S. federal	$	133,281		$	39,665		$	31,493
U.S. state and local		49,475			29,942			6,841
Non U.S.		60,766			70,441			22,103
		243,522			140,048			60,437
Deferred
U.S. federal		(79,812	)		(44,507	)		(11,941	)
U.S. state and local		(25,981	)		(8,911	)		(4,001	)
Non U.S.		(5,576	)		(2,227	)		(4,825	)
		(111,369	)		(55,645	)		(20,767	)

Provision for income taxes	$	132,153		$	84,403		$	39,670

Reconciliation of U.S. Federal Statutory Income Tax Rate to the Effective Tax Rate

The following table reconciles the U.S. federal statutory income tax rate to the effective income tax rate:

	Years Ended
	December 31,			December 31,			December 31,
	2021			2020			2019
U.S. federal statutory income tax rate		21.00	%		21.00	%		21.00	%
U.S. state and local income taxes, net of U.S. federal income tax benefits		2.90	%		3.14	%		2.51	%
Change in tax rates applicable to non-U.S. earnings		(5.09	%)		(3.30	%)		(3.74	%)
Foreign Derived Intangible Income (FDII), net of GILTI ⁽¹⁾		(1.09	%)		(3.84	%)		1.05	%
Domestic tax credits and incentives		(0.59	%)		(0.59	%)		(0.31	%)
Valuation allowance		—	%		—	%		(0.10	%)
Excess share-based compensation		(2.65	%)		(3.24	%)		(13.94	%)
Other		0.92	%		(0.87	%)		0.11	%
Effective income tax rate		15.40	%		12.30	%		6.58	%

⁽¹⁾	The year ended December 31, 2020 includes (3.00%) released during the year related to the favorable impact on prior years from final regulations clarifying certain provisions of the Tax Cuts and Jobs Act (“Tax Reform”).

Significant Components of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2021 and 2020, were as follows:

	As of
	December 31,			December 31,
	2021			2020
	(in thousands)
Deferred tax assets:
Capitalized expenses	$	94,265		$	—
Unearned revenue		56,810			46,530
Lease liabilities		39,507			40,786
Employee compensation and benefit plans		20,216			20,602
Interest expense carryforwards		11,215			7,901
Loss carryforwards		18,173			3,071
Pension		2,229			3,066
Other		3,509			—
Subtotal		245,924			121,956
Less: valuation allowance		(36	)		—
Total deferred tax assets	$	245,888		$	121,956
Deferred tax liabilities:
Intangible assets	$	(147,118	)	$	(51,862	)
Right of use assets		(32,106	)		(35,634	)
Property, equipment and leasehold improvements, net		(27,136	)		(20,197	)
Unremitted foreign earnings		(3,059	)		(1,279	)
Unearned revenue		—			—
Other		—			(2,131	)
Total deferred tax liabilities	$	(209,419	)	$	(111,103	)
Net deferred tax assets	$	36,469		$	10,853

Summary of Deferred Tax Asset Valuation Allowance

The following table presents changes in the Company’s deferred tax asset valuation allowance for the periods indicated:

	Years Ended
	December 31,		December 31,		December 31,
	2021		2020		2019
	(in thousands)
Beginning balance	$	—	$	—	$	632
Additions charged to cost and expenses		36		—		—
Deductions		—		—		(632	)
Ending balance	$	36	$	—	$	—

Summary of Components of Income Before Provision for Income Taxes

The following table presents the components of income before provision for income taxes generated by domestic or foreign operations for the periods indicated:

	Years Ended
	December 31,		December 31,		December 31,
	2021		2020		2019
	(in thousands)
Domestic	$	417,679	$	353,049	$	351,177
Foreign ⁽¹⁾		440,457		333,176		252,141
Total income before provision for income taxes	$	858,136	$	686,225	$	603,318

⁽¹⁾	Foreign income before provision for income taxes is defined as income generated from operations located outside the U.S., which includes income from foreign branches of U.S. companies.

Reconciliation of Unrecognized Tax Benefits

The following table presents a reconciliation of the beginning and ending amount of the gross unrecognized tax benefits, excluding interest and penalties, for the years ended December 31, 2021, 2020 and 2019:

	Years Ended
Gross unrecognized tax benefits	December 31,			December 31,			December 31,
(in thousands)	2021			2020			2019
Beginning balance	$	16,621		$	15,841		$	14,091
Increases based on tax positions related to the current period		511			292			2,413
Increases based on tax positions related to prior periods		20,321			2,099			—
Decreases based on tax positions related to prior periods		—			—			—
Decreases related to settlements with taxing authorities		—			—			—
Decreases related to a lapse of applicable statute of limitations		(4,414	)		(1,611	)		(663	)
Ending balance	$	33,039		$	16,621		$	15,841