XML 43 R14.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income Taxes | Note 6. Income Taxes Earnings before income taxes were derived from the following sources:
| 2015 |  | 2014 |  | 2013
Domestic | $ | 785,916 |  |  | 757,896 |  |  | 697,062 |
Foreign | 40,104 |  |  | 29,538 |  |  | 16,406 |
| $ | 826,020 |  |  | 787,434 |  |  | 713,468 |
Components of income tax expense (benefit) were as follows:
2015 : | Current |  | Deferred |  | Total
Federal | $ | 256,748 |  |  | 7,362 |  |  | 264,110 |
State | 31,297 |  |  | 227 |  |  | 31,524 |
Foreign | 13,677 |  |  | 348 |  |  | 14,025 |
| $ | 301,722 |  |  | 7,937 |  |  | 309,659 |
2014 : | Current |  | Deferred |  | Total
Federal | $ | 250,527 |  |  | 1,919 |  |  | 252,446 |
State | 30,768 |  |  | 256 |  |  | 31,024 |
Foreign | 10,518 |  |  | (704 | ) |  | 9,814 |
| $ | 291,813 |  |  | 1,471 |  |  | 293,284 |
2013 : | Current |  | Deferred |  | Total
Federal | $ | 220,588 |  |  | 8,547 |  |  | 229,135 |
State | 29,073 |  |  | 527 |  |  | 29,600 |
Foreign | 7,487 |  |  | (1,390 | ) |  | 6,097 |
| $ | 257,148 |  |  | 7,684 |  |  | 264,832 |
Income tax expense in the accompanying consolidated financial statements differed from the expected expense as follows:
| 2015 |  | 2014 |  | 2013
Federal income tax expense at the ‘expected’ rate of 35% | $ | 289,107 |  |  | 275,602 |  |  | 249,714 |
Increase (decrease) attributed to: |  |  |  |  |
State income taxes, net of federal benefit | 21,613 |  |  | 20,549 |  |  | 16,683 |
Other, net | (1,061 | ) |  | (2,867 | ) |  | (1,565 | )
Total income tax expense | $ | 309,659 |  |  | 293,284 |  |  | 264,832 |
Effective income tax rate | 37.5 | % |  | 37.2 | % |  | 37.1 | %
The tax effects of temporary differences that give rise to deferred income tax assets and liabilities at year end were as follows:
| 2015 |  | 2014
Deferred income tax assets (liabilities): |  |  |
Inventory costing and valuation methods | $ | 4,556 |  |  | 4,311 |
Allowance for doubtful accounts receivable | 4,529 |  |  | 4,873 |
Insurance claims payable | 10,930 |  |  | 10,404 |
Promotions payable | 1,738 |  |  | 1,586 |
Stock-based compensation | 8,270 |  |  | 7,837 |
Federal and state benefit of uncertain tax positions | 1,911 |  |  | 1,327 |
Foreign net operating loss and credit carryforwards | 5,155 |  |  | 5,768 |
Foreign valuation allowances | (3,406 | ) |  | (3,007 | )
Other, net | 1,541 |  |  | 592 |
Total deferred income tax assets | 35,224 |  |  | 33,691 |
Property and equipment | (90,281 | ) |  | (80,458 | )
Total deferred income tax liabilities | (90,281 | ) |  | (80,458 | )
Net deferred income tax liabilities | $ | (55,057 | ) |  | (46,767 | )
In November 2015, the Financial Accounting Standards Board (FASB) issued ASU 2015-17, Income Taxes (Topic 740), to simplify the presentation of deferred income taxes. Under the new standard, both deferred tax liabilities and assets are required to be classified as noncurrent in a classified balance sheet. This standard will become effective for fiscal years, and the interim periods within those years, beginning after December 15, 2016, with early adoption allowed. As of December 31, 2014, we had deferred taxes that were classified as current assets and noncurrent liabilities. During the fourth quarter of 2015, we elected to prospectively adopt this standard, thus reclassifying $23,300 of current deferred tax assets to noncurrent (netted within noncurrent liabilities) on the accompanying consolidated balance sheet. The prior reporting period was not retrospectively adjusted. The adoption of this guidance had no impact on our Consolidated Statements of Earnings and Comprehensive Income. A reconciliation of the beginning and ending amount of total gross unrecognized tax benefits was as follows:
| 2015 |  | 2014
Balance at beginning of year: | $ | 3,772 |  |  | 3,282 |
Increase related to prior year tax positions | 704 |  |  | 185 |
Decrease related to prior year tax positions | (43 | ) |  | (113 | )
Increase related to current year tax positions | 984 |  |  | 924 |
Decrease related to statute of limitation lapses | — |  |  | (506 | )
Balance at end of year: | $ | 5,417 |  |  | 3,772 |
Included in the liability for gross unrecognized tax benefits is an immaterial amount for interest and penalties, both of which we classify as a component of income tax expense. The amount of gross unrecognized tax benefits that would favorably impact the effective tax rate, if recognized, is not material. Fastenal files income tax returns in the United States federal jurisdiction, all states, and various local and foreign jurisdictions. With limited exceptions, we are no longer subject to income tax examinations by taxing authorities for taxable years before 2012 in the case of United States federal and foreign examinations and 2011 in the case of state and local examinations. In general, it is our practice and intention to permanently reinvest the earnings of our foreign subsidiaries and repatriate earnings only when the tax impact is zero or very minimal. As of December 31, 2015, we have not made a provision for United States income taxes or for additional foreign withholding taxes on $140,000 of unremitted earnings. Generally, such amounts become subject to United States taxation upon the remittance of dividends and under certain other circumstances. It is not practicable to estimate the amount of deferred income tax liabilities related to investments in these foreign subsidiaries.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration