XML 36 R20.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES Our 2016 income tax provision from continuing operations was $111.2 million compared to $106.3 million for 2015 and $103.5 million for 2014. 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, 2016, 2015 and 2014, were 37.5%, 38.1% and 37.4%, respectively. The increase in the 2016 income tax provision compared to 2015 was predominantly due to the effect of increased income before income taxes and certain increases in the state tax provision attributable to the mix of earnings. 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. As of December 31, 2016 and 2015, the amount of unrecognized income tax benefits was $4.0 million and $4.8 million, respectively (of which $2.2 million and $3.0 million, if recognized, would favorably affect our effective income tax rate, respectively). As of December 31, 2016 and 2015, we had an accrual of $0.5 million and $0.4 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, 2016 and 2015, 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, 2016 and 2015, respectively. As of December 31, 2016 and 2015, we had total income tax reserves included in “Other long-term liabilities” of $4.5 million and $5.2 million, respectively. We record interest expense on unrecognized tax benefits in income tax expense. A reconciliation of unrecognized income tax benefits at the beginning and at the end of the year is as follows (in thousands):
| 2016 |  | 2015
Balance at beginning of year | $ | 4,761 |  |  | $ | 5,203 |
Additions based on tax positions related to the current year | 1,415 |  |  | 611 |
Additions based on tax positions related to prior years | — |  |  | — |
Reductions for tax positions of prior years | (1,360 | ) |  | (1,053 | )
Reductions for expired statute of limitations | (834 | ) |  | — |
Balance at end of year | $ | 3,982 |  |  | $ | 4,761 |
It is reasonably possible that approximately $3.3 million of unrecognized income tax benefits at December 31, 2016, primarily relating to uncertain tax positions attributable to tax return filing positions, may decrease in the next twelve months as a result of anticipated 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 state taxing authorities for the years 2008 through 2015. The income tax provision in the accompanying Consolidated Statements of Operations for the years ended December 31, 2016, 2015 and 2014 consisted of the following (in thousands):
| 2016 |  | 2015 |  | 2014
Current: |  |  |  |  |
Federal provision | $ | 95,171 |  |  | $ | 94,405 |  |  | $ | 80,852 |
State and local provisions | 23,387 |  |  | 21,320 |  |  | 14,532 |
Foreign provision | 749 |  |  | 831 |  |  | 2,396 |
| 119,307 |  |  | 116,556 |  |  | 97,780 |
Deferred | (8,108 | ) |  | (10,300 | ) |  | 5,748 |
| $ | 111,199 |  |  | $ | 106,256 |  |  | $ | 103,528 |
Factors accounting for the variation from U.S. statutory income tax rates from continuing operations for the years ended December 31, 2016, 2015 and 2014 were as follows (in thousands):
| 2016 |  | 2015 |  | 2014
Federal income taxes at the statutory rate | $ | 103,773 |  |  | $ | 97,588 |  |  | $ | 98,576 |
Noncontrolling interests | (76 | ) |  | (77 | ) |  | (1,667 | )
State and local income taxes, net of federal tax benefits | 14,801 |  |  | 12,590 |  |  | 9,944 |
State tax reserves | 74 |  |  | 62 |  |  | (38 | )
Permanent differences | 3,698 |  |  | 3,096 |  |  | 2,961 |
Domestic manufacturing deduction | (6,830 | ) |  | (6,604 | ) |  | (5,008 | )
Excess tax benefit from share-based compensation | (2,114 | ) |  | — |  |  | — |
Foreign income taxes (including UK statutory rate changes) | (1,290 | ) |  | (361 | ) |  | (1,237 | )
Federal tax reserves | (893 | ) |  | 14 |  |  | 62 |
Other | 56 |  |  | (52 | ) |  | (65 | )
| $ | 111,199 |  |  | $ | 106,256 |  |  | $ | 103,528 |
The deferred income tax assets and deferred income tax liabilities recorded for the years ended December 31, 2016 and 2015 were as follows (in thousands):
| 2016 |  | 2015
Deferred income tax assets: |  |  |
Excess of amounts expensed for financial statement purposes over amounts deducted for income tax purposes: |  |  |
Insurance liabilities | $ | 62,473 |  |  | $ | 58,582 |
Pension liability | 8,950 |  |  | 6,255 |
Deferred compensation | 35,649 |  |  | 28,033 |
Other (including liabilities and reserves) | 32,350 |  |  | 28,562 |
Total deferred income tax assets | 139,422 |  |  | 121,432 |
Valuation allowance for deferred tax assets | (3,531 | ) |  | (805 | )
Net deferred income tax assets | 135,891 |  |  | 120,627 |
Deferred income tax liabilities: |  |  |
Costs capitalized for financial statement purposes and deducted for income tax purposes: |  |  |
Goodwill and identifiable intangible assets | (229,347 | ) |  | (218,715 | )
Depreciation of property, plant and equipment | (18,145 | ) |  | (17,211 | )
Other | (5,761 | ) |  | (5,299 | )
Total deferred income tax liabilities | (253,253 | ) |  | (241,225 | )
Net deferred income tax liabilities | $ | (117,362 | ) |  | $ | (120,598 | )
The components of the net deferred income tax liabilities in the accompanying Consolidated Balance Sheets are included in “Prepaid expenses and other” of $41.7 million and $36.0 million, “Other assets” of $12.9 million and $11.3 million, and “Other long-term obligations” of $172.0 million and $167.9 million, at December 31, 2016 and December 31, 2015, respectively. We file a consolidated federal income tax return including all of our U.S. subsidiaries. As of December 31, 2016 and 2015, the total valuation allowance on net deferred income tax assets was approximately $3.5 million and $0.8 million, respectively, related to state and local net operating losses. The reason for the net increase in the valuation allowance for 2016 was related to the uncertainty of projected future earnings required to realize the benefit of net operating loss carryforwards for certain subsidiaries. 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, 2016, we had trading losses for United Kingdom income tax purposes of approximately $17.9 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, 2016, 2015 and 2014 consisted of the following (in thousands):
| 2016 |  | 2015 |  | 2014
United States | $ | 283,904 |  |  | $ | 264,867 |  |  | $ | 265,529 |
Foreign | 12,590 |  |  | 13,956 |  |  | 16,116 |
| $ | 296,494 |  |  | $ | 278,823 |  |  | $ | 281,645 |
As of December 31, 2016, we had undistributed foreign earnings from our United Kingdom subsidiary of approximately $28.1 million for which we have not recorded a deferred tax liability, as a significant portion of such earnings were subject to tax in prior periods and the earnings which have not been subject to income taxes in prior periods are indefinitely reinvested. As of December 31, 2016, the amount of cash held in the United Kingdom was approximately $30.2 million which, if repatriated, should not result in any federal or state income taxes. As of December 31, 2016, 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, 2016, 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.

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=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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration