Income Taxes | Income Taxes The provision (benefit) for income taxes for the years ended December 31, 2018 , 2017 and 2016 , consisted of the following (in thousands): Years Ended December 31, 2018 2017 2016 Current: Federal $ 99,830 $ 133,097 $ 156,937 State 38,356 24,944 34,927 Foreign 35,007 27,079 20,725 Deferred: Federal and state (15,849 ) 41,717 (3,785 ) Foreign (30 ) 95 1,917 $ 157,314 $ 226,932 $ 210,721 Income before the provision for income taxes for the years ended December 31, 2018 , 2017 and 2016 , consisted of the following (in thousands): Years Ended December 31, 2018 2017 2016 Domestic $ 485,489 $ 445,418 $ 494,890 Foreign 106,113 72,098 59,220 $ 591,602 $ 517,516 $ 554,110 The income taxes shown above varied from the statutory federal income tax rates for these periods as follows: Years Ended December 31, 2018 2017 2016 Federal U.S. income tax rate 21.0 % 35.0 % 35.0 % State income taxes, net of federal tax benefit 4.7 3.7 4.2 Permanent book/tax differences 0.6 0.4 0.5 Non-U.S. income taxed at different rates, net of foreign tax credits 2.0 — (0.6 ) Federal tax credits (1.7 ) (1.3 ) (0.8 ) Tax impact of uncertain tax positions 0.8 0.2 — Valuation allowance release, net — — (0.1 ) Tax effects of TCJA 0.4 6.5 — Other, net (1.2 ) (0.6 ) (0.2 ) Effective tax rate 26.6 % 43.9 % 38.0 % The deferred portion of the tax (benefit) provision consisted of the following (in thousands): Years Ended December 31, 2018 2017 2016 Accrued expenses, deducted for tax when paid $ (21,884 ) $ 15,213 $ (6,889 ) Capitalized costs for books, deducted for tax (4,832 ) (5,790 ) 5,901 Depreciation 10,071 (4,079 ) (2,405 ) Tax effects of TCJA — 34,633 — Other, net 766 1,835 1,525 $ (15,879 ) $ 41,812 $ (1,868 ) The components of the deferred income tax amounts at December 31, 2018 and 2017 , were as follows (in thousands): December 31, 2018 2017 Deferred Income Tax Assets Deferred compensation and other benefit obligations $ 87,513 $ 68,101 Credits and net operating loss carryforwards 31,169 30,087 Stock-based compensation 9,535 8,614 Provision for bad debts 7,891 6,794 Workers’ compensation 3,580 3,127 Other 14,959 13,343 Total deferred income tax assets 154,647 130,066 Deferred Income Tax Liabilities Amortization of intangible assets (21,210 ) (20,220 ) Property and equipment basis differences (9,761 ) (4,421 ) Other (10,319 ) (10,847 ) Total deferred income tax liabilities (41,290 ) (35,488 ) Valuation allowance (23,072 ) (20,178 ) Total deferred income tax assets, net $ 90,285 $ 74,400 Credits and net operating loss carryforwards primarily include net operating losses in foreign countries of $27.7 million that expire in 2019 and later ; and California enterprise zone tax credits of $2.9 million that expire in 2023 . Of the $2.9 million of California enterprise zone tax credits, the Company expects that it will utilize $1.2 million of these credits prior to expiration. Valuation allowances of $21.4 million have been maintained against net operating loss carryforwards and other deferred items in foreign countries. In addition, a valuation allowance of $1.7 million has been maintained against California enterprise zone tax credits. As of December 31, 2018 , the Company’s consolidated financial statements provide for any related U.S. tax liability on earnings of foreign subsidiaries that may be repatriated, aside from undistributed earnings of certain of the Company’s foreign subsidiaries that are intended to be indefinitely reinvested in operations outside the United States. The following table reconciles the total amounts of gross unrecognized tax benefits from January 1, 2016 to December 31, 2018 (in thousands): December 31, 2018 2017 2016 Balance at beginning of period $ 2,886 $ 731 $ 814 Gross increases—tax positions in prior years 3,259 1,503 92 Gross decreases—tax positions in prior years (8 ) (257 ) — Gross increases—tax positions in current year 2,284 956 114 Settlements — (40 ) — Lapse of statute of limitations (3 ) (7 ) (289 ) Balance at end of period $ 8,418 $ 2,886 $ 731 The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate is $8.3 million , $2.8 million and $0.5 million for 2018 , 2017 and 2016 , respectively. The Company’s continuing practice is to recognize interest and penalties related to income tax matters in income tax expense. The total amount of interest and penalties accrued as of December 31, 2018 is $0.3 million , including a $0.2 million increase recorded in income tax expense during the year. The total amount of interest and penalties accrued as of December 31, 2017 was $0.1 million . The total amount of interest and penalties accrued as of December 31, 2016 , was $0.1 million , including a $0.1 million reduction recorded in income tax expense during the year. The Company believes it is reasonably possible that the settlement of certain tax uncertainties could occur within the next twelve months; accordingly, $0.1 million of the unrecognized gross tax benefit has been classified as a current liability as of December 31, 2018 . This amount primarily represents unrecognized tax benefits composed of items related to assessed state income tax audits and negotiations. The Company’s major income tax jurisdictions are the United States, Australia, Belgium, Canada, France, Germany and the United Kingdom. For U.S. federal income tax, the Company remains subject to examination for 2015 and subsequent years. For major U.S. states, with few exceptions, the Company remains subject to examination for 2014 and subsequent years. Generally, for the foreign countries, the Company remains subject to examination for 2011 and subsequent years. |