Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Components of Income before Income Taxes

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



	2018		2017			2016
U.S.	$	34,159	$	(135,757	)	$	182,178
Non-U.S.	146,962		7,940			106,253
Income (loss) before income taxes	$	181,121	$	(127,817	)	$	288,431

Schedule of Components of Income Tax

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



	2018			2017			2016
Current tax expense:
U.S. federal	$	2,817		$	48,339		$	58,616
State and local	6,969			434			11,292
Foreign	45,042			38,602			27,536
Total current	54,828			87,375			97,444
Deferred tax (benefit) expense:
U.S. federal	12,462			(176,046		)	(61		)
State and local	1,258			(14,363		)	(349		)
Foreign	(13,795		)	(25,898		)	(1,626		)
Total deferred	(75		)	(216,307		)	(2,036		)
Total current and deferred	54,753			(128,932		)	95,408
Benefit (expense) relating to interest rate swaps used to increase (decrease) equity	3,840			(2,477		)	(1,113		)
Benefit from stock transactions with employees used to increase equity	58			46			52
Benefit relating to defined-benefit pension adjustments used to increase equity	14			267			502
Total tax expense (benefit)	$	58,665		$	(131,096	)	$	94,849

Schedule of Deferred Tax Assets and Liabilities

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



	December 31,
	2018			2017
Accrued liabilities	$	96,292		$	80,557
Loss and credit carryforwards	14,830			59,502
Assets relating to equity compensation	19,653			24,874
Other assets	14,092			30,236
Gross deferred tax assets	144,867			195,169
Property, equipment, and leasehold improvements	(3,421		)	(962		)
Intangible assets	(214,580		)	(372,542		)
Prepaid expenses	(41,926		)	(35,126		)
Other liabilities	(61,068		)	(6,584		)
Gross deferred tax liabilities	(320,995		)	(415,214		)
Valuation allowance	(4,066		)	(3,192		)
Net deferred tax liabilities	$	(180,194	)	$	(223,237	)

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:



	2018		2017		2016
Statutory tax rate	21.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	—		3.6		2.3
Effect of non-U.S. operations	(10.6	)	5.9		(6.1	)
Change in the reserve for tax contingencies	15.7		(2.8	)	3.2
Law changes	(1.3	)	41.8		—
Stock-based compensation expense	(5.3	)	11.0		(3.8	)
Nondeductible acquisition costs	0.9		(7.9	)	2.6
Nondeductible meals and entertainment costs	2.7		(3.5	)	1.1
Gains/Losses on divested operations and held-for-sale assets	12.2		13.1		—
Limitation on executive compensation	2.7		(0.1	)	—
Foreign-derived intangible income	(2.0	)	—		—
Change in the valuation allowance	0.5		3.0		(0.2	)
Goodwill	(3.8	)	—		—
Other items, net	(0.3	)	3.5		(1.2	)
Effective tax rate	32.4	%	102.6	%	32.9	%

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):



	2018			2017
Beginning balance	$	60,269		$	37,099
Additions based on tax positions related to the current year	27,371			10,883
Additions for tax positions of prior years	14,691			24,299
Reductions for tax positions of prior years	(3,939		)	(10,613		)
Reductions for expiration of statutes	(6,293		)	(1,368		)
Settlements	(472		)	(1,769		)
Change in foreign currency exchange rates	(1,278		)	1,738
Ending balance	$	90,349		$	60,269