Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Income taxes (Tables)

v3.19.3.a.u2
Income taxes (Tables)
12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Schedule of provision for income taxes by tax jurisdiction
The following table presents our provision for income taxes by tax jurisdiction for the years ended December 31, 2019, 2018 and 2017:
 
Year Ended December 31,
 
2019
 
2018
 
2017
Deferred tax expense (benefit)
 
 
 
 
 
Ireland
$
154,134

 
$
140,621

 
$
144,532

United States
11,327

 
6,510

 
56,650

The Netherlands
7,316

 
4,136

 
(7,470
)
Other
7,658

 
8,881

 
(14,188
)
 
180,435

 
160,148

 
179,524

Deferred tax (benefit) expense related to a (decrease) increase in changes in valuation allowance of deferred tax assets
 
 
 
 
 
Ireland
2,358

 
368

 
1,366

United States
(18,425
)
 
(2,838
)
 
(29,147
)
The Netherlands
87

 
(2,302
)
 
(8,518
)
Other
(1,957
)
 
(7,788
)
 
13,796

 
(17,937
)
 
(12,560
)
 
(22,503
)
Current tax (benefit) expense
 
 
 
 
 
Ireland

 
(27
)
 
5,606

United States
789

 
(3,691
)
 
(1,659
)
The Netherlands
261

 
(307
)
 
717

Other
4,166

 
516

 
3,033

 
5,216

 
(3,509
)
 
7,697

Provision for income taxes
$
167,714

 
$
144,079

 
$
164,718


Schedule of reconciliation of statutory of income tax expense to provision for income taxes
The following table provides a reconciliation of the statutory income tax expense to provision for income taxes for the years ended December 31, 2019, 2018 and 2017:
 
Year Ended December 31,
 
2019
 
2018
 
2017
 
Income tax expense at statutory income tax rate of 12.5%
$
167,580

 
$
143,866

 
$
154,484

 
 
 
 
 
 
 
 
Permanent differences
(949
)
(a)
1,016

(b)
23,737

(c)
Foreign rate differential
1,083

 
(803
)
 
(13,503
)
 
 
134

 
213

 
10,234

 
Provision for income taxes
$
167,714

 
$
144,079

 
$
164,718

 
 
(a)
The 2019 permanent differences included non-deductible interest, non-deductible share-based compensation in Ireland and in the Netherlands, and a valuation allowance change in respect of U.S., Dutch and Irish tax losses.
(b)
The 2018 permanent differences included non-deductible share-based compensation in Ireland and in the Netherlands, and a valuation allowance change in respect of U.S., Dutch and Irish tax losses.
(c)
The 2017 permanent differences included non-deductible share-based compensation in Ireland and in the Netherlands, impacts of the change in tax rate in the United States, and a valuation allowance change in respect of U.S., Dutch and Irish tax losses.
Schedule of foreign rate differential by tax jurisdiction
The following tables present our foreign rate differential by tax jurisdiction for the years ended December 31, 2019, 2018 and 2017:
 
Year Ended December 31, 2019
 
Pre-tax income (loss)
 
Local statutory tax rate (a)
 
Variance to Irish statutory tax rate of 12.5%
 
Tax variance as a result of global activities (b)
Tax jurisdiction
 
 
 
 
 
 
 
Ireland
$
1,324,100

 
12.5
%
 
0.0
 %
 
$

United States
(30,041
)
 
21.0
%
 
8.5
 %
 
(2,553
)
The Netherlands
30,656

 
25.0
%
 
12.5
 %
 
3,832

Other
8,331

 
10.1
%
 
(2.4
)%
 
(196
)
Taxable income
$
1,333,046

 
 
 
 
 
$
1,083

Permanent differences (c)
7,596

 
 
 
 
 
 
Income from continuing operations before income tax
$
1,340,642

 
 
 
 
 
 
 
Year Ended December 31, 2018
 
Pre-tax income (loss)
 
Local statutory tax rate (a)
 
Variance to Irish statutory tax rate of 12.5%
 
Tax variance as a result of global activities (b)
Tax jurisdiction
 
 
 
 
 
 
 
Ireland
$
1,163,574

 
12.5
%
 
0.0
%
 
$

United States
(85
)
 
22.0
%
 
9.5
%
 
(8
)
The Netherlands
6,108

 
25.0
%
 
12.5
%
 
764

Other
(10,977
)
 
26.7
%
 
14.2
%
 
(1,559
)
Taxable income
$
1,158,620

 
 
 
 
 
$
(803
)
Permanent differences (d)
(7,687
)
 
 
 
 
 
 

Income from continuing operations before income tax
$
1,150,933

 
 
 
 
 
 
15. Income taxes (Continued)
 
Year Ended December 31, 2017
 
Pre-tax income (loss)
 
Local statutory tax rate (a)
 
Variance to Irish statutory tax rate of 12.5%
 
Tax variance as a result of global activities (b)
Tax jurisdiction
 
 
 
 
 
 
 
Ireland
$
1,212,029

 
12.5
%
 
0.0
 %
 
$

United States
72,390

 
35.7
%
 
23.2
 %
 
16,744

The Netherlands
(61,086
)
 
25.0
%
 
12.5
 %
 
(7,636
)
Isle of Man
185,882

 
0.0
%
 
(12.5
)%
 
(23,235
)
Other
9,138

 
19.3
%
 
6.8
 %
 
624

Taxable income
$
1,418,353

 
 
 
 
 
$
(13,503
)
Permanent differences (e)
(182,481
)
 
 
 
 
 
 
Income from continuing operations before income tax
$
1,235,872

 
 
 
 
 
 
 
(a)
The local statutory income tax expense for our significant tax jurisdictions (Ireland, the United States and the Netherlands) does not differ from the actual income tax expense.
(b)
The tax variance as a result of global activities is primarily caused by our operations in countries with a higher or lower statutory tax rate than the statutory tax rate in Ireland.
(c)
The 2019 permanent differences included non-deductible interest, non-deductible share-based compensation in Ireland and in the Netherlands, and a valuation allowance change in respect of U.S., Dutch and Irish tax losses.
(d)
The 2018 permanent differences included non-deductible share-based compensation in Ireland and in the Netherlands, and a valuation allowance change in respect of U.S., Dutch and Irish tax losses.
(e)
The 2017 permanent differences included non-deductible share-based compensation in Ireland and in the Netherlands, impacts of the change in tax rate in the United States, and a valuation allowance change in respect of U.S., Dutch and Irish tax losses.
Schedule of principal components of deferred tax assets and liabilities
The following tables provide details regarding the principal components of our deferred income tax liabilities and assets by jurisdiction as of December 31, 2019 and 2018:
 
As of December 31, 2019
 
Ireland
 
United States
 
The
Netherlands
 
Other
 
Total
Depreciation/Impairment
$
(1,924,492
)
 
$
(606
)
 
$
6,873

 
$
(1,253
)
 
$
(1,919,478
)
Intangibles
(4,594
)
 
(5,222
)
 

 

 
(9,816
)
Accrued maintenance liability
(3,456
)
 
1,666

 

 

 
(1,790
)
Obligations under capital leases and debt obligations
(3,806
)
 

 

 

 
(3,806
)
Investments

 
(7,996
)
 

 

 
(7,996
)
Deferred losses on sale of assets

 
24,178

 

 

 
24,178

Valuation allowance
(5,654
)
 
(38,720
)
 
(16,025
)
 
(13,962
)
 
(74,361
)
Losses and credits forward
1,146,434

 
58,099

 
20,568

 
19,090

 
1,244,191

Other
(58,691
)
 
(99
)
 
(1,773
)
 
(5,818
)
 
(66,381
)
Net deferred income tax (liabilities) assets
$
(854,259
)
 
$
31,300

 
$
9,643

 
$
(1,943
)
 
$
(815,259
)
15. Income taxes (Continued)
 
As of December 31, 2018
 
Ireland
 
United States
 
The
Netherlands
 
Other
 
Total
Depreciation/Impairment
$
(1,612,534
)
 
$
254

 
$
5,974

 
$
(887
)
 
$
(1,607,193
)
Intangibles
(7,011
)
 
(6,108
)
 

 

 
(13,119
)
Accrued maintenance liability
(3,242
)
 
4,509

 

 

 
1,267

Obligations under capital leases and debt obligations
(4,255
)
 

 

 

 
(4,255
)
Investments

 
(8,619
)
 

 

 
(8,619
)
Deferred losses on sale of assets

 
28,770

 

 

 
28,770

Valuation allowance
(3,296
)
 
(57,145
)
 
(15,938
)
 
(15,919
)
 
(92,298
)
Losses and credits forward
996,676

 
62,351

 
28,770

 
23,018

 
1,110,815

Other
(77,973
)
 
502

 
(1,760
)
 
(2,454
)
 
(81,685
)
Net deferred income tax (liabilities) assets
$
(711,635
)
 
$
24,514

 
$
17,046

 
$
3,758

 
$
(666,317
)

Schedule of movement in valuation allowance for deferred income taxes
The following table presents the movements in the valuation allowance for deferred income tax assets during the years ended December 31, 2019 and 2018:
 
Year Ended December 31,
 
2019
 
2018
Valuation allowance at beginning of period
$
92,298

 
$
104,858

Decrease of allowance to income tax provision
(17,937
)
 
(12,560
)
Valuation allowance at end of period
$
74,361

 
$
92,298