XML 35 R20.htm IDEA: XBRL DOCUMENT v3.22.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income taxesThe Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.
Income before income taxes from continuing operations consisted of the following: 
 Year ended December 31,
 202120202019
Domestic$1,463,029 $1,287,976 $1,307,299 
International55,465 30,286 (111,860)
 $1,518,494 $1,318,262 $1,195,439 
 Income tax expense for continuing operations consisted of the following:
 Year ended December 31,
 202120202019
Current:   
Federal$216,539 $47,171 $208,339 
State15,601 21,442 58,026 
International14,247 17,481 15,545 
Total current income tax246,387 86,094 281,910 
Deferred:   
Federal59,528 198,623 44,263 
State5,342 27,206 (25,836)
International(4,525)2,009 (20,709)
Total deferred income tax60,345 227,838 (2,282)
 $306,732 $313,932 $279,628 
Income taxes are allocated between continuing and discontinued operations as follows:
Year ended December 31,
202120202019
Continuing operations$306,732 $313,932 $279,628 
Discontinued operations— 1,657 40,689 
$306,732 $315,589 $320,317 
The reconciliation between the Company’s effective tax rate from continuing operations and the U.S. federal income tax rate is as follows:
 Year ended December 31,
 202120202019
Federal income tax rate21.0 %21.0 %21.0 %
State income taxes, net of federal benefit3.0 3.4 2.3 
Equity compensation(2.4)— 0.5 
Federal and international tax rate adjustments1.3 — — 
Nondeductible executive compensation0.8 1.2 0.8 
Political advocacy costs0.2 1.7 0.2 
Unrecognized tax benefits(0.1)0.4 2.4 
Change in international valuation allowance(1.0)1.5 1.3 
Other1.0 (0.6)(0.2)
Impact of noncontrolling interests primarily
 attributable to non-tax paying entities		(3.6)(4.8)(4.9)
Effective tax rate20.2 %23.8 %23.4 %
Deferred tax assets and liabilities arising from temporary differences for continuing operations were as follows:
 December 31,
 20212020
Receivables$8,430 $9,324 
Accrued liabilities67,993 64,982 
Operating lease liabilities581,199 584,656 
Net operating loss carryforwards162,987 167,398 
Other52,434 62,110 
Deferred tax assets873,043 888,470 
Valuation allowance(100,616)(114,824)
Net deferred tax assets772,427 773,646 
Intangible assets(644,039)(634,736)
Property and equipment(283,913)(274,742)
Operating lease assets(530,839)(532,082)
Investments in partnerships(84,407)(101,996)
Other(37,274)(39,690)
Deferred tax liabilities(1,580,472)(1,583,246)
Net deferred tax liabilities$(808,045)$(809,600)
Reported as:
Deferred tax liabilities$(830,954)$(809,600)
Deferred tax assets (included in Other long-term assets)22,909 — 
$(808,045)$(809,600)

At December 31, 2021, the Company had federal net operating loss carryforwards of approximately $85,391 that expire through 2036, although a substantial amount expire by 2029. The Company also had state net operating loss carryforwards of $554,806, some of which have an indefinite life, although a substantial amount expire by 2041 and international net operating loss carryforwards of $291,927, some of which will begin to expire in 2022 though the majority have an indefinite life. The Company has a state capital loss carryover of $313,722, the majority of which expires in 2024. The utilization of a portion of these losses may be limited in future years based on the profitability of certain entities. A valuation allowance is recorded to account for the unrealizable balances in the table above. The net decrease of $14,208 in the valuation allowance is primarily due to the release of the valuation allowance on indefinite life net operating losses in jurisdictions where the Company has generated sufficient income to support their future utilization, partially offset by newly created net operating loss carryforwards in state and foreign jurisdictions that the Company does not anticipate being able to utilize.
During the year ended December 31, 2021, the Company recorded a true-up to recognize net deferred tax assets related to historical purchases of noncontrolling interests in consolidated partnerships. The effect of this adjustment was an increase of $46,692 to net deferred tax assets, a charge of $16,044 to income tax expense, and an increase of $62,736 to additional paid-in capital. The Company’s prior purchases of this type have not generated significant pre-tax adjustments to additional paid-in capital in any single prior year. The majority of the $16,044 recorded to income tax expense was due to the decrease in the corporate tax rate in 2017.
The Company's foreign earnings continue to be indefinitely reinvested as of December 31, 2021. As a result of the passage of the Tax Cuts and Jobs Act (2017 Tax Act), the Company does not expect such earnings to be taxable if remitted.
Unrecognized tax benefits
A reconciliation of the beginning and ending liability for unrecognized tax benefits that do not meet the more-likely-than-not threshold is as follows:
 Year ended December 31,
 20212020
Beginning balance$70,202 $68,214 
Additions for tax positions related to current year3,335 2,293 
Additions for tax positions related to prior years22,616 258 
Reductions related to lapse of applicable statute(751)(133)
Reductions related to settlements with taxing authorities(22,378)(430)
Ending balance$73,024 $70,202 
As of December 31, 2021, the Company’s total liability for unrecognized tax benefits relating to tax positions that do not meet the more-likely-than-not threshold is $73,024, of which $68,708 would impact the Company’s effective tax rate if recognized and $42,860 is classified as a current tax liability related to settlements expected to be paid in 2022. This balance represents an increase of $2,822 from the December 31, 2020 balance of $70,202.
The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. At December 31, 2021 and 2020, the Company had approximately $15,275 and $17,864, respectively, accrued for interest and penalties related to unrecognized tax benefits, net of federal tax benefit.
The Company and its subsidiaries file U.S. federal and state income tax returns and various foreign income tax returns. The Company is no longer subject to U.S. federal and state examinations by tax authorities for years before 2014 and 2009, respectively. In addition to being under audit in various state and local tax jurisdictions, the Company’s federal tax returns are under audit by the Internal Revenue Service for the years 2014-2017.