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

Income taxes (Tables)

v3.8.0.1
Income taxes (Tables)
12 Months Ended
Dec. 31, 2017
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, 2017, 2016 and 2015:
 
Year Ended December 31,
 
2017
 
2016
 
2015
Deferred tax expense (benefit)
 
 
 
 
 
Ireland
$
144,532

 
$
141,364

 
$
151,623

United States
56,650

 
(41,163
)
 
(65,341
)
The Netherlands
(7,470
)
 
(8,346
)
 
(7,453
)
Other
(14,188
)
 
14,124

 
22,130

 
179,524

 
105,979

 
100,959

Deferred tax expense (benefit) related to an increase (decrease) in changes in valuation allowance of deferred tax assets
 
 
 
 
 
Ireland
1,366

 
1,562

 

United States
(29,147
)
 
54,056

 
10,074

The Netherlands
(8,518
)
 
12,843

 
13,915

Other
13,796

 
(13,100
)
 
(13,922
)
 
(22,503
)
 
55,361

 
10,067

Current tax expense (benefit)
 
 
 
 
 
Ireland
5,606

 
4,730

 
(99
)
United States
(1,659
)
 
3,166

 
39,358

The Netherlands
717

 
1,164

 
37,512

Other
3,033

 
3,096

 
2,008

 
7,697

 
12,156

 
78,779

Provision for income taxes
$
164,718

 
$
173,496

 
$
189,805

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, 2017, 2016 and 2015:
 
Year Ended December 31,
 
2017
 
 
2016
 
 
2015
 
Income tax expense at statutory income tax rate of 12.5%
$
154,484

 
 
$
150,050

 
 
$
170,712

 
 
 
 
 
 
 
 
 
 
Permanent differences
23,737

(a)
 
29,057

(b)
 
29,555

(c)
Foreign rate differential
(13,503
)
 
 
(5,611
)
 
 
(10,462
)
 
 
10,234

 
 
23,446

 

19,093

 
Provision for income taxes
$
164,718

 
 
$
173,496

 
 
$
189,805

 
 
(a)
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.
(b)
The 2016 permanent differences included non-deductible share-based compensation in Ireland and in the Netherlands, non-deductible intercompany interest allocated to the United States, and a valuation allowance taken in respect of U.S., Dutch and Irish tax losses.
(c)
The 2015 permanent differences included the non-deductible intercompany interest allocated to the United States, non-deductible share-based compensation in the Netherlands, non-deductible costs relating to the transfer of certain functions from the Netherlands to Ireland, and a valuation allowance taken in respect of U.S. and Dutch 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, 2017, 2016 and 2015:
 
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 (c)
(182,481
)
 
 
 
 
 
 
Income from continuing operations before income tax
$
1,235,872

 
 
 
 
 
 
 
Year Ended December 31, 2016
 
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
$
1,151,387

 
12.5
%
 
0.0
 %
 
$

United States
44,238

 
36.3
%
 
23.8
 %
 
10,529

The Netherlands
37,580

 
25.0
%
 
12.5
 %
 
4,698

Isle of Man
181,286

 
0.0
%
 
(12.5
)%
 
(22,661
)
Other
18,989

 
22.1
%
 
9.6
 %
 
1,823

Taxable income
$
1,433,480

 
 
 
 
 
$
(5,611
)
Permanent differences (d)
(233,084
)
 
 
 
 
 
 

Income from continuing operations before income tax
$
1,200,396

 
 
 
 
 
 

 
Year Ended December 31, 2015
 
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
$
1,212,190

 
12.5
%
 
0.0
 %
 
$

United States
(43,825
)
 
36.3
%
 
23.8
 %
 
(10,430
)
The Netherlands
175,897

 
25.0
%
 
12.5
 %
 
21,987

Isle of Man
181,118

 
0.0
%
 
(12.5
)%
 
(22,640
)
Other
77,671

 
13.3
%
 
0.8
 %
 
621

Taxable income
$
1,603,051

 
 
 
 
 
$
(10,462
)
Permanent differences (e)
(237,352
)
 
 
 
 
 
 
Income from continuing operations before income tax
$
1,365,699

 
 
 
 
 
 
 
(a)
The local statutory income tax expense for our significant tax jurisdictions (Ireland, the United States, the Netherlands and Isle of Man) 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 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.
(d)
The 2016 permanent differences included non-deductible share-based compensation in Ireland and in the Netherlands, non-deductible intercompany interest allocated to the United States, and a valuation allowance taken in respect of U.S., Dutch and Irish tax losses.
(e)
The 2015 permanent differences included the non-deductible intercompany interest allocated to the United States, non-deductible share-based compensation in the Netherlands, non-deductible costs relating to the transfer of certain functions from the Netherlands to Ireland, and a valuation allowance taken in respect of U.S. and Dutch 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, 2017 and 2016:
 
As of December 31, 2017
 
Ireland
 
United States
 
The
Netherlands
 
Other
 
Total
Depreciation/Impairment
$
(1,336,757
)
 
$
1,553

 
$
9,138

 
$
327

 
$
(1,325,739
)
Intangibles
(4,159
)
 
(5,341
)
 

 

 
(9,500
)
Interest expense

 
(166
)
 

 

 
(166
)
Accrued maintenance liability
(4,362
)
 
4,055

 

 

 
(307
)
Obligations under capital leases and debt obligations
(4,691
)
 

 

 

 
(4,691
)
Investments

 
(8,095
)
 

 

 
(8,095
)
Deferred losses on sale of assets

 
32,119

 

 

 
32,119

Accrued expenses

 
7,338

 

 

 
7,338

Valuation allowance
(2,928
)
 
(59,983
)
 
(18,240
)
 
(23,707
)
 
(104,858
)
Losses and credits forward
850,774

 
59,260

 
26,047

 
25,731

 
961,812

Other
(70,042
)
 
(2,543
)
 
(542
)
 
2,500

 
(70,627
)
Net deferred income tax (liabilities) assets
$
(572,165
)
 
$
28,197

 
$
16,403

 
$
4,851

 
$
(522,714
)

 
As of December 31, 2016
 
Ireland
 
United States
 
The
Netherlands
 
Other
 
Total
Depreciation/Impairment
$
(1,030,901
)
 
$
(16,322
)
 
$
8,547

 
$
(63
)
 
$
(1,038,739
)
Intangibles
(6,353
)
 
(16,242
)
 

 

 
(22,595
)
Interest expense

 
(588
)
 

 

 
(588
)
Accrued maintenance liability
(6,028
)
 
12,810

 

 

 
6,782

Obligations under capital leases and debt obligations
(3,151
)
 

 

 

 
(3,151
)
Investments

 
(12,641
)
 

 

 
(12,641
)
Deferred losses on sale of assets

 
66,119

 

 

 
66,119

Accrued expenses

 
13,942

 

 

 
13,942

Valuation allowance
(1,562
)
 
(89,130
)
 
(26,758
)
 
(9,911
)
 
(127,361
)
Losses and credits forward
666,214

 
92,215

 
26,759

 
20,693

 
805,881

Other
(46,133
)
 
5,539

 
(4,399
)
 
(6,190
)
 
(51,183
)
Net deferred income tax (liabilities) assets
$
(427,914
)
 
$
55,702

 
$
4,149

 
$
4,529

 
$
(363,534
)
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, 2017 and 2016:
 
Year Ended December 31,
 
2017
 
2016
Valuation allowance at beginning of period
$
127,361

 
$
72,000

(Decrease) increase of allowance to income tax provision
(22,503
)
 
55,361

Valuation allowance at end of period
$
104,858

 
$
127,361