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Income Taxes | 12 Months Ended
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Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES Our 2015 income tax provision from continuing operations was $106.3 million compared to $103.5 million for 2014 and $82.3 million for 2013. The actual income tax rates on income from continuing operations before income taxes, less amounts attributable to noncontrolling interests, for the years ended December 31, 2015, 2014 and 2013, were 38.1%, 37.4% and 35.9%, respectively. The increase in the 2015 income tax provision compared to 2014 was predominantly due to certain increases in the state tax provision attributable to the mix of earnings and the effect of a change in the United Kingdom statutory tax rate on deferred tax assets. The increase in the 2014 income tax provision compared to 2013 was primarily due to the effect of increased income before income taxes and the 2013 reversal of reserves for previously unrecognized income tax benefits. As of December 31, 2015 and 2014, the amount of unrecognized income tax benefits was $4.8 million and $5.2 million (of which $3.0 million, if recognized, would favorably affect our effective income tax rate), respectively. As of December 31, 2015 and 2014, we had an accrual of $0.4 million and $0.3 million for the payment of interest related to unrecognized income tax benefits included in the Consolidated Balance Sheets, respectively. During each of the years ended December 31, 2015 and 2014, we recognized approximately $0.1 million in interest expense related to our unrecognized income tax benefits. In addition, we reversed less than $0.1 million and $0.1 million of accrued interest expense related to our unrecognized income tax benefits for the years ended December 31, 2015 and 2014, respectively. As of December 31, 2015 and 2014, we had total income tax reserves included in “Other long-term liabilities” of $5.2 million and $5.5 million, respectively. We record interest expense on unrecognized tax benefits in income tax expense. A reconciliation of the beginning and end of year unrecognized income tax benefits is as follows (in thousands):
| 2015 |  | 2014
Balance at beginning of year | $ | 5,203 |  |  | $ | 3,116 |
Additions based on tax positions related to the current year | 611 |  |  | 1,053 |
Additions based on tax positions related to prior years | — |  |  | 2,816 |
Reductions for tax positions of prior years | (1,053 | ) |  | (1,162 | )
Reductions for expired statute of limitations | — |  |  | (620 | )
Balance at end of year | $ | 4,761 |  |  | $ | 5,203 |
It is reasonably possible that approximately $4.1 million of unrecognized income tax benefits at December 31, 2015, primarily relating to uncertain tax positions attributable to tax return filing positions, may decrease in the next twelve months as a result of estimated settlements with taxing authorities and the expiration of applicable statutes of limitations. We file income tax returns with the Internal Revenue Service and various state, local and foreign tax agencies. The Company is currently under examination by the Internal Revenue Service and various taxing authorities for the years 2008 through 2014. During the first quarter of 2014, the Internal Revenue Service finalized its audit of our federal income tax returns for the years 2010 through 2011. We agreed to and paid an assessment, for an immaterial amount, proposed by the Internal Revenue Service pursuant to such audit. The income tax provision in the accompanying Consolidated Statements of Operations for the years ended December 31, 2015, 2014 and 2013 consisted of the following (in thousands):
| 2015 |  | 2014 |  | 2013
Current: |  |  |  |  |
Federal provision | $ | 94,405 |  |  | $ | 80,852 |  |  | $ | 60,449 |
State and local provisions | 21,320 |  |  | 14,532 |  |  | 2,897 |
Foreign provision | 831 |  |  | 2,396 |  |  | 7,083 |
| 116,556 |  |  | 97,780 |  |  | 70,429 |
Deferred | (10,300 | ) |  | 5,748 |  |  | 11,857 |
| $ | 106,256 |  |  | $ | 103,528 |  |  | $ | 82,286 |
Factors accounting for the variation from U.S. statutory income tax rates from continuing operations for the years ended December 31, 2015, 2014 and 2013 were as follows (in thousands):
| 2015 |  | 2014 |  | 2013
Federal income taxes at the statutory rate | $ | 97,588 |  |  | $ | 98,576 |  |  | $ | 81,448 |
Noncontrolling interests | (77 | ) |  | (1,667 | ) |  | (1,247 | )
State and local income taxes, net of federal tax benefits | 12,590 |  |  | 9,944 |  |  | 9,446 |
State tax reserves | 62 |  |  | (38 | ) |  | (6,529 | )
Permanent differences | 3,096 |  |  | 2,961 |  |  | 3,226 |
Domestic manufacturing deduction | (6,604 | ) |  | (5,008 | ) |  | (4,778 | )
Foreign income taxes (including UK statutory rate changes) | (361 | ) |  | (1,237 | ) |  | 1,183 |
Federal tax reserves | 14 |  |  | 62 |  |  | 263 |
Other | (52 | ) |  | (65 | ) |  | (726 | )
| $ | 106,256 |  |  | $ | 103,528 |  |  | $ | 82,286 |
The components of the net deferred income tax liability are included in “Prepaid expenses and other” of $36.0 million, “Other assets” of $11.3 million, and “Other long-term obligations” of $167.9 million at December 31, 2015, and the components of net deferred income tax liability are included in “Prepaid expenses and other” of $29.3 million, “Other assets” of $16.6 million, and “Other long-term obligations” of $173.7 million at December 31, 2014 in the accompanying Consolidated Balance Sheets. The amounts recorded for the years ended December 31, 2015 and 2014 were as follows (in thousands):
| 2015 |  | 2014
Deferred income tax assets: |  |  |
Excess of amounts expensed for financial statement purposes over amounts deducted for income tax purposes: |  |  |
Insurance liabilities | $ | 58,582 |  |  | $ | 54,351 |
Pension liability | 6,255 |  |  | 10,142 |
Deferred compensation | 28,033 |  |  | 17,886 |
Other (including liabilities and reserves) | 28,562 |  |  | 31,828 |
Total deferred income tax assets | 121,432 |  |  | 114,207 |
Valuation allowance for deferred tax assets | (805 | ) |  | (2,024 | )
Net deferred income tax assets | 120,627 |  |  | 112,183 |
Deferred income tax liabilities: |  |  |
Costs capitalized for financial statement purposes and deducted for income tax purposes: |  |  |
Goodwill and identifiable intangible assets | (218,715 | ) |  | (216,126 | )
Other, primarily depreciation of property, plant and equipment | (22,510 | ) |  | (23,884 | )
Total deferred income tax liabilities | (241,225 | ) |  | (240,010 | )
Net deferred income tax liabilities | $ | (120,598 | ) |  | $ | (127,827 | )
We file a consolidated federal income tax return including all of our U.S. subsidiaries. As of December 31, 2015 and 2014, the total valuation allowance on net deferred income tax assets was approximately $0.8 million and $2.0 million, respectively, related to state and local net operating losses. The reason for the net decrease in the valuation allowance for 2015 was related to the utilization of state and local net operating loss carryforwards. Although realization is not assured, we believe it is more likely than not that the deferred income tax asset, net of the valuation allowance discussed above, will be realized. The amount of the deferred income tax asset considered realizable, however, could be reduced if estimates of future income are reduced. At December 31, 2015, we had trading losses for United Kingdom income tax purposes of approximately $23.4 million, which have no expiration date. Such losses are subject to review by the United Kingdom taxing authority. Realization of the deferred income tax assets is dependent on our generating sufficient taxable income. We believe that the deferred income tax assets will be realized through projected future income. Income before income taxes from continuing operations for the years ended December 31, 2015, 2014 and 2013 consisted of the following (in thousands):
| 2015 |  | 2014 |  | 2013
United States | $ | 264,867 |  |  | $ | 265,529 |  |  | $ | 219,300 |
Foreign | 13,956 |  |  | 16,116 |  |  | 13,409 |
| $ | 278,823 |  |  | $ | 281,645 |  |  | $ | 232,709 |
As of December 31, 2015, we had undistributed foreign earnings from our United Kingdom subsidiary of approximately $21.9 million for which we have not recorded a deferred tax liability, as we have provided taxes on a significant portion of such earnings in prior periods and the earnings on which income taxes have not been provided are indefinitely reinvested. As of December 31, 2015, the amount of cash held in the United Kingdom was approximately $46.5 million which, if repatriated, should not result in any federal or state income taxes. As of December 31, 2015, we had undistributed foreign earnings from our Puerto Rico subsidiary of approximately $1.4 million for which we have not recorded a deferred tax liability as such earnings are indefinitely reinvested. As of December 31, 2015, the amount of cash held in Puerto Rico was approximately $3.0 million which, if repatriated, may result in federal and state income taxes of approximately $0.5 million.

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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=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
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