XML 29 R15.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2015
Income Taxes [Abstract] |
Income Taxes [Text Block] |
(7) | Income Taxes
Earnings before income taxes for the years ended December 31, 2015, 2014 and 2013 consisted of the following components (in thousands):
|  | 2015 |  |  | 2014 |  |  | 2013 |
United States |  | $ | 710,614 |  |  | $ | 665,219 |  |  | $ | 517,432 |
Other |  |  | 291,731 |  |  |  | 256,237 |  |  |  | 236,698 |
|  | $ | 1,002,345 |  |  | $ | 921,456 |  |  | $ | 754,130 |
Components of income tax expense for the years ended December 31, 2015, 2014 and 2013 were as follows (in thousands):
|  | 2015 |  |  | 2014 |  |  | 2013 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 229,224 |  |  | $ | 218,302 |  |  | $ | 166,430 |
State |  |  | 22,041 |  |  |  | 37,155 |  |  |  | 12,577 |
Foreign |  |  | 71,507 |  |  |  | 56,107 |  |  |  | 40,451 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Domestic |  |  | (10,134 | ) |  |  | (30,664 | ) |  |  | (1,965 | )
Foreign |  |  | (6,360 | ) |  |  | (5,477 | ) |  |  | (1,656 | )
|  | $ | 306,278 |  |  | $ | 275,423 |  |  | $ | 215,837 |
Reconciliations between the statutory federal income tax rate and the effective income tax rate for the years ended December 31, 2015, 2014 and 2013 were as follows:
|  | 2015 |  |  | 2014 |  |  | 2013 |
Federal statutory rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
Foreign rate differential |  |  | (3.3 | ) |  |  | (3.9 | ) |  |  | (4.1 | )
R&D tax credits |  |  | (0.5 | ) |  |  | (0.4 | ) |  |  | (0.5 | )
State taxes, net of federal benefit |  |  | 2.0 |  |  |  | 2.0 |  |  |  | 1.9 |
Section 199 deduction |  |  | (1.3 | ) |  |  | (1.6 | ) |  |  | (1.8 | )
Other, net |  |  | (1.3 | ) |  |  | (1.2 | ) |  |  | (1.9 | )
|  |  | 30.6 | % |  |  | 29.9 | % |  |  | 28.6 | %
The deferred income tax balance sheet accounts arise from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. Components of the deferred tax assets and liabilities at December 31 were as follows (in thousands):
|  | 2015 |  |  | 2014 |
Deferred tax assets: |  |  |  |  |  |
Reserves and accrued expenses |  | $ | 146,014 |  |  | $ | 130,508 |
Inventories |  |  | 9,309 |  |  |  | 10,186 |
Net operating loss carryforwards |  |  | 45,616 |  |  |  | 41,480 |
R&D credits |  |  | 8,504 |  |  |  | 7,145 |
Foreign tax credits |  |  | 7,940 |  |  |  | - |
Valuation allowance |  |  | (19,338 | ) |  |  | (16,169 | )
Total deferred tax assets |  | $ | 198,045 |  |  | $ | 173,150 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Reserves and accrued expenses |  | $ | 11,222 |  |  | $ | 27,981 |
Amortizable intangible assets |  |  | 962,143 |  |  |  | 798,502 |
Plant and equipment |  |  | 4,004 |  |  |  | 4,741 |
Total deferred tax liabilities |  | $ | 977,369 |  |  | $ | 831,224 |
At December 31, 2015, the Company had approximately $17.5 million of tax-effected U.S. federal net operating loss carryforwards that if not utilized will expire in years 2023 through 2035. The U.S. federal net operating loss carryforwards increased from 2014 to 2015 primarily due to to additional net operating losses obtained through a recent acquisition. In a recent acquisition, the consolidated group obtained U.S. federal net operating losses subject to an IRC Section 382 limitation; however, the Company expects to utilize the losses in their entirety prior to expiration. The Company has approximately $22.9 million of tax-effected state net operating loss carryforwards (without regard to federal benefit of state) that if not utilized will expire in years 2016 through 2035. The state net operating loss carryforwards are primarily related to Florida, Georgia and New Jersey, but the Company has smaller net operating losses in various other states. The Company has approximately $13.1 million of tax-effected foreign net operating loss carryforwards that if not utilized will begin to expire in 2016, while some do not have a definite expiration. Additionally, the Company has $12.4 million of U.S. federal and state research and development tax credit carryforwards (without regard to federal benefit of state) that will expire in years 2019 through 2035 and $7.9 million of U.S. federal foreign tax credits that, if not utilized, will expire in 2025. As of December 31, 2015, the Company determined that a total valuation allowance of $19.3 million was necessary to reduce U.S. deferred tax assets by $11.0 million and foreign deferred tax assets by $8.3 million, where it was more likely than not that some portion or all of such deferred tax assets will not be realized. As of December 31, 2015, based on the Company's estimates of future taxable income and any applicable tax-planning strategies within various tax jurisdictions, the Company believes that it is more likely than not that the remaining net deferred tax assets will be realized. The Company recognizes in the consolidated financial statements only those tax positions determined to be "more likely than not" of being sustained upon examination based on the technical merits of the positions. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):
|  | 2015 |  |  | 2014 |  |  | 2013 |
Beginning balance |  | $ | 28,567 |  |  | $ | 26,924 |  |  | $ | 24,865 |
Additions for tax positions of prior periods |  |  | 3,525 |  |  |  | 6,532 |  |  |  | 3,055 |
Additions for tax positions of the current period |  |  | 3,299 |  |  |  | 5,571 |  |  |  | 1,639 |
Additions due to acquisitions |  |  | 6,177 |  |  |  | - |  |  |  | 5,026 |
Reductions for tax positions of prior periods |  |  | (12,206 | ) |  |  | (1,008 | ) |  |  | (3,675 | )
Reductions for tax positions of the current period |  |  |  |  |  |  |  |  |  |  |  |
Settlements with taxing authorities |  |  | (142 | ) |  |  | (518 | ) |  |  | - |
Lapse of applicable statute of limitations |  |  | (3,080 | ) |  |  | (8,934 | ) |  |  | (3,986 | )
Ending balance |  | $ | 26,140 |  |  | $ | 28,567 |  |  | $ | 26,924 |
The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is $24.2 million. Interest and penalties related to unrecognized tax benefits are classified as a component of income tax expense and totaled a benefit of $1.8 million in 2015. Accrued interest and penalties were $3.4 million at December 31, 2015 and $5.2 million at December 31, 2014. During the next twelve months, the unrecognized tax benefits are expected to decrease by a net $3.2 million, due mainly to anticipated statute of limitations lapses in various jurisdictions. The Company and its subsidiaries are subject to U.S. federal income tax as well as income taxes of multiple state, city and foreign jurisdictions. The Company's federal income tax returns for 2013 through the current period remain subject to examination and the relevant state, city and foreign statutes vary. At December 31, 2015, the Internal Revenue Service has been and is continuing to examine the Company's income tax returns for the years 2013 and 2014. The Company does not expect the assessment of any significant additional tax in excess of amounts reserved.

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