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Income Taxes | 12 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES On December 22, 2017, the U.S. government enacted comprehensive tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code, including, among other things, reducing the U.S. federal corporate tax rate from 35% to 21%, effective January 1, 2018. As a result of the reduction of the U.S. corporate tax rate to 21%, U.S. generally accepted accounting principles require companies to re-value their deferred tax assets and liabilities as of the date of enactment, with the resulting tax effects accounted for in the reporting period of enactment. Based on currently available information, the Company’s estimated value of its net deferred federal and state tax liability balances have been reduced by approximately $39.3 million, which has been recorded as a reduction of income tax expense in the Company’s Consolidated Statements of Operations for the year ended December 31, 2017. Such estimate will be finalized upon the completion of the 2017 federal and state income tax returns. In addition, under the Tax Act, companies are required to evaluate the effect of a one-time transition tax to their specified foreign operations. Although such estimate is still provisional, the Company believes the impact of such transition tax is expected to be immaterial. The Company will continue to evaluate the interpretations and assumptions made, guidance that may be issued and actions the Company may take as a result of the Tax Act, which could materially change this estimate in 2018 as new information becomes available. Our 2017 income tax provision from continuing operations was $90.7 million compared to $111.2 million for 2016 and $106.3 million for 2015. 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, 2017, 2016 and 2015, were 28.5%, 37.5% and 38.1%, respectively. The decrease in the 2017 income tax provision compared to 2016 was predominantly due to the revaluation of the Company’s net deferred tax liability balances as discussed above, partially offset by increased income before income taxes. 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. As of December 31, 2017, the amount of unrecognized income tax benefits was $0.8 million. As of December 31, 2016, the amount of unrecognized income tax benefits was $4.0 million, of which $2.2 million, if recognized, would favorably affect our effective income tax rate. We report interest expense and/or interest income related to unrecognized tax benefits in the income tax provision. As of December 31, 2017 and 2016, we had approximately $0.1 million and $0.5 million, respectively, of accrued interest expense related to unrecognized income tax benefits included as a liability in the Consolidated Balance Sheets. Total income tax reserves included in “Other long-term liabilities” were $0.9 million and $4.5 million as of December 31, 2017 and 2016, respectively. For the years ended December 31, 2017 and 2016, less than $0.1 million and approximately $0.1 million of interest expense, respectively, was recognized in the income tax provision. In addition, for the years ended December 31, 2017 and 2016, approximately $0.5 million and less than $0.1 million of interest income, respectively, was recognized in the income tax provision. A reconciliation of unrecognized income tax benefits at the beginning and at the end of the year is as follows (in thousands):
| 2017 |  | 2016
Balance at beginning of year | $ | 3,982 |  |  | $ | 4,761 |
Additions based on tax positions related to the current year | 1,158 |  |  | 1,415 |
Additions based on tax positions related to prior years | 1,244 |  |  | — |
Reductions for tax positions of prior years | (5,543 | ) |  | (1,360 | )
Reductions for expired statute of limitations | — |  |  | (834 | )
Balance at end of year | $ | 841 |  |  | $ | 3,982 |
We do not anticipate any significant changes to our reserves for uncertain tax positions in the next twelve months.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 various taxing authorities for the years 2012 through 2015. During the first quarter of 2017, the Company settled an examination with a taxing authority which resulted in a $3.3 million reversal of reserves for previously uncertain tax positions. The income tax provision in the accompanying Consolidated Statements of Operations for the years ended December 31, 2017, 2016 and 2015 consisted of the following (in thousands):
| 2017 |  | 2016 |  | 2015
Current: |  |  |  |  |
Federal provision | $ | 120,317 |  |  | $ | 95,171 |  |  | $ | 94,405 |
State and local provisions | 23,496 |  |  | 23,387 |  |  | 21,320 |
Foreign provision | 244 |  |  | 749 |  |  | 831 |
| 144,057 |  |  | 119,307 |  |  | 116,556 |
Deferred | (53,358 | ) |  | (8,108 | ) |  | (10,300 | )
| $ | 90,699 |  |  | $ | 111,199 |  |  | $ | 106,256 |
Factors accounting for the variation from U.S. statutory income tax rates from continuing operations for the years ended December 31, 2017, 2016 and 2015 were as follows (in thousands):
| 2017 |  | 2016 |  | 2015
Federal income taxes at the statutory rate | $ | 111,562 |  |  | $ | 103,773 |  |  | $ | 97,588 |
State and local income taxes, net of federal tax benefits | 15,736 |  |  | 14,801 |  |  | 12,590 |
State tax reserves | (2,543 | ) |  | 74 |  |  | 62 |
Permanent differences | 4,916 |  |  | 3,698 |  |  | 3,096 |
Domestic manufacturing deduction | (10,387 | ) |  | (6,830 | ) |  | (6,604 | )
Excess tax benefit from share-based compensation | (1,341 | ) |  | (2,114 | ) |  | — |
Goodwill impairment | 17,055 |  |  | — |  |  | — |
Foreign income taxes (including UK statutory rate changes) | (2,586 | ) |  | (1,290 | ) |  | (361 | )
Impact of federal rate change on net deferred tax liabilities | (39,343 | ) |  | — |  |  | — |
Federal tax reserves | (1,247 | ) |  | (893 | ) |  | 14 |
Other | (1,123 | ) |  | (20 | ) |  | (129 | )
| $ | 90,699 |  |  | $ | 111,199 |  |  | $ | 106,256 |
The deferred income tax assets and deferred income tax liabilities recorded for the years ended December 31, 2017 and 2016 were as follows (in thousands):
| 2017 |  | 2016
Deferred income tax assets: |  |  |
Excess of amounts expensed for financial statement purposes over amounts deducted for income tax purposes: |  |  |
Insurance liabilities | $ | 42,425 |  |  | $ | 62,473 |
Pension liability | 6,900 |  |  | 8,950 |
Deferred compensation | 27,742 |  |  | 35,649 |
Other (including liabilities and reserves) | 28,534 |  |  | 32,350 |
Total deferred income tax assets | 105,601 |  |  | 139,422 |
Valuation allowance for deferred tax assets | (3,825 | ) |  | (3,531 | )
Net deferred income tax assets | 101,776 |  |  | 135,891 |
Deferred income tax liabilities: |  |  |
Costs capitalized for financial statement purposes and deducted for income tax purposes: |  |  |
Goodwill and identifiable intangible assets | (150,900 | ) |  | (229,347 | )
Depreciation of property, plant and equipment | (11,781 | ) |  | (18,145 | )
Other | (3,792 | ) |  | (5,761 | )
Total deferred income tax liabilities | (166,473 | ) |  | (253,253 | )
Net deferred income tax liabilities | $ | (64,697 | ) |  | $ | (117,362 | )
The components of the net deferred income tax liabilities in the accompanying Consolidated Balance Sheets are included in “Other assets” of $10.0 million and $12.9 million and “Other long-term obligations” of $74.7 million and $130.3 million, at December 31, 2017 and December 31, 2016, respectively. We file a consolidated federal income tax return including all of our U.S. subsidiaries. As of December 31, 2017 and 2016, the total valuation allowance on deferred income tax assets was approximately $3.8 million and $3.5 million, respectively, related to state and local net operating losses. Although realization is not assured, we believe it is more likely than not that the deferred income tax assets, net of the valuation allowance discussed above, will be realized. The amount of the deferred income tax assets considered realizable, however, could be reduced if estimates of future income are reduced. At December 31, 2017, we had trading losses for United Kingdom income tax purposes of approximately $12.3 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 from continuing operations before income taxes for the years ended December 31, 2017, 2016 and 2015 consisted of the following (in thousands):
| 2017 |  | 2016 |  | 2015
United States | $ | 303,854 |  |  | $ | 283,904 |  |  | $ | 264,867 |
Foreign | 14,895 |  |  | 12,590 |  |  | 13,956 |
| $ | 318,749 |  |  | $ | 296,494 |  |  | $ | 278,823 |
The unremitted earnings of our United Kingdom subsidiary will not be subject to the transition tax previously referenced because a portion of such earnings has been previously taxed and there remains an accumulated deficit position in earnings and profits. The unremitted earnings of our Puerto Rico subsidiary may be subject to the transition tax; however, as part of our evaluation of the Tax Act, we estimate such tax will be immaterial. As of December 31, 2017, the amount of cash held by our United Kingdom and Puerto Rico subsidiaries was approximately $43.3 million and approximately $3.0 million, respectively. The future repatriation of cash, or unremitted earnings, of these subsidiaries may result in an immaterial amount of federal and state income taxes or foreign withholding taxes.

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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 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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