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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | Note 6. Income Taxes Earnings before income taxes were derived from the following sources:
| 2016 |  | 2015 |  | 2014
Domestic | $ | 739,383 |  |  | 785,916 |  |  | 757,896 |
Foreign | 50,346 |  |  | 40,104 |  |  | 29,538 |
Earnings before income taxes | $ | 789,729 |  |  | 826,020 |  |  | 787,434 |
Components of income tax expense (benefit) were as follows:
2016: | Current |  | Deferred |  | Total
Federal | $ | 223,837 |  |  | 23,149 |  |  | 246,986 |
State | 28,231 |  |  | 1,236 |  |  | 29,467 |
Foreign | 12,634 |  |  | 1,164 |  |  | 13,798 |
Income tax expense | $ | 264,702 |  |  | 25,549 |  |  | 290,251 |
2015: | Current |  | Deferred |  | Total
Federal | $ | 256,748 |  |  | 7,362 |  |  | 264,110 |
State | 31,297 |  |  | 227 |  |  | 31,524 |
Foreign | 13,677 |  |  | 348 |  |  | 14,025 |
Income tax expense | $ | 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 |
Income tax expense | $ | 291,813 |  |  | 1,471 |  |  | 293,284 |
Income tax expense in the accompanying consolidated financial statements differed from the expected expense as follows:
| 2016 |  | 2015 |  | 2014
Federal income tax expense at the 'expected' rate of 35% | $ | 276,405 |  |  | 289,107 |  |  | 275,602 |
Increase (decrease) attributed to: |  |  |  |  |
State income taxes, net of federal benefit | 20,038 |  |  | 21,613 |  |  | 20,549 |
Other, net | (6,192 | ) |  | (1,061 | ) |  | (2,867 | )
Total income tax expense | $ | 290,251 |  |  | 309,659 |  |  | 293,284 |
Effective income tax rate | 36.8 | % |  | 37.5 | % |  | 37.2 | %
The tax effects of temporary differences that give rise to deferred income tax assets and liabilities at year end consisted of the following:
| 2016 |  | 2015
Deferred income tax assets (liabilities): |  |  |
Inventory costing and valuation methods | $ | 4,788 |  |  | 4,556 |
Allowance for doubtful accounts | 4,339 |  |  | 4,529 |
Insurance reserves | 11,489 |  |  | 10,930 |
Promotions payable | 1,651 |  |  | 1,738 |
Stock-based compensation | 6,789 |  |  | 8,270 |
Federal and state benefit of uncertain tax positions | 1,908 |  |  | 1,911 |
Foreign net operating loss and credit carryforwards | 5,121 |  |  | 5,155 |
Foreign valuation allowances | (3,998 | ) |  | (3,406 | )
Other, net | 2,123 |  |  | 1,541 |
Total deferred income tax assets | 34,210 |  |  | 35,224 |
Property and equipment | (114,838 | ) |  | (90,281 | )
Total deferred income tax liabilities | (114,838 | ) |  | (90,281 | )
Net deferred income tax liabilities | $ | (80,628 | ) |  | (55,057 | )
A reconciliation of the beginning and ending amount of total gross unrecognized tax benefits was as follows:
| 2016 |  | 2015
Balance at beginning of year: | $ | 5,417 |  |  | 3,772 |
Increase related to prior year tax positions | 194 |  |  | 704 |
Decrease related to prior year tax positions | — |  |  | (43 | )
Increase related to current year tax positions | 846 |  |  | 984 |
Decrease related to statute of limitation lapses | (1,050 | ) |  | — |
Balance at end of year: | $ | 5,407 |  |  | 5,417 |
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. We do not anticipate significant changes in total unrecognized tax benefits during the next twelve months. 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 2014 in the case of United States federal examinations, and 2012 in the case of foreign, 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, 2016, we have not made a provision for United States income taxes or for additional foreign withholding taxes on $147,000 of unremitted earnings. Such earnings are considered to be indefinitely reinvested and, accordingly, no U.S. federal or state deferred income taxes have been provided on this amount or any additional excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries. Earnings is the most significant component of the basis difference which is indefinitely reinvested. 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.

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- 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=65882285&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=65882285&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=65882285&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=65882285&loc=d3e32537-109319 + Details
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