Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Components of Income before Income Taxes

The following is a summary of the components of the Company's (loss) income before income taxes for the years ended December 31 (in thousands):



	2017			2016		2015
U.S.	$	(135,757	)	$	182,178	$	165,848
Non-U.S.	7,940			106,253		106,363
(Loss) income before income taxes	$	(127,817	)	$	288,431	$	272,211

Schedule of Components of Income Tax

The expense for income taxes on the above income consists of the following components (in thousands):



	2017			2016			2015
Current tax expense:
U.S. federal	$	48,339		$	58,616		$	48,801
State and local	434			11,292			10,300
Foreign	38,602			27,536			23,225
Total current	87,375			97,444			82,326
Deferred tax (benefit) expense:
U.S. federal	(176,046		)	(61		)	(884		)
State and local	(14,363		)	(349		)	(702		)
Foreign	(25,898		)	(1,626		)	1,550
Total deferred	(216,307		)	(2,036		)	(36		)
Total current and deferred	(128,932		)	95,408			82,290
Benefit (expense) relating to interest rate swaps used to increase (decrease) equity	(2,477		)	(1,113		)	893
Benefit from stock transactions with employees used to increase equity	46			52			13,960
Benefit (expense) relating to defined-benefit pension adjustments used to increase (decrease) equity	267			502			(567		)
Total tax (benefit) expense	$	(131,096	)	$	94,849		$	96,576

Schedule of Deferred Tax Assets and Liabilities

Long-term deferred tax assets and liabilities are comprised of the following (in thousands):



	December 31,
	2017			2016
Accrued liabilities	$	80,557		$	62,439
Loss and credit carryforwards	59,502			7,766
Assets relating to equity compensation	24,874			25,569
Other assets	30,236			6,652
Gross deferred tax assets	195,169			102,426
Property, equipment, and leasehold improvements	(962		)	(11,796		)
Intangible assets	(372,542		)	(43,548		)
Prepaid expenses	(35,126		)	(32,971		)
Other liabilities	(6,584		)	(7,925		)
Gross deferred tax liabilities	(415,214		)	(96,240		)
Valuation allowance	(3,192		)	(1,431		)
Net deferred tax (liabilities) assets	$	(223,237	)	$	4,755

Schedule of Effective Income Tax Rate Reconciliation

The differences between the U.S. federal statutory income tax rate and the Company’s effective tax rate on income before income taxes for the years ended December 31 follow:



	2017		2016		2015
Statutory tax rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	3.6		2.4		3.5
Effect of non-U.S. operations	5.9		(6.1	)	(6.9	)
Record (release) reserve for tax contingencies	(2.8	)	3.2		1.7
Law changes	41.8		—		(0.2	)
Excess tax benefits from stock based compensation	11.0		(3.8	)	—
Nondeductible acquisition costs	(7.9	)	2.6		0.8
Nondeductible meals and entertainment costs	(3.5	)	1.1		1.1
Capital loss	13.1		—		—
Record (release) valuation allowance	3.0		(0.2	)	0.5
Other items, net	3.4		(1.3	)	—
Effective tax rate	102.6	%	32.9	%	35.5	%

Schedule of Reconciliation of Beginning and Ending Unrecognized Tax Benefits

The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, for the years ended December 31 (in thousands):



	2017			2016
Beginning balance	$	37,099		$	25,911
Additions based on tax positions related to the current year	10,883			7,086
Additions for tax positions of prior years	24,299			6,443
Reductions for tax positions of prior years	(10,613		)	(496		)
Reductions for expiration of statutes	(1,368		)	(1,006		)
Settlements	(1,769		)	(544		)
Change in foreign currency exchange rates	1,738			(295		)
Ending balance	$	60,269		$	37,099