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Income Taxes
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6 Months Ended |
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Jun. 30, 2014
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| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes Over the last three years, a tax law known as the “look-through rule” exception has been allowed to expire and has been retroactively reinstated, which has impacted TransUnion’s effective tax rate. Subpart F requires U.S. corporate shareholders to recognize current U.S. taxable income from passive income, such as dividends earned, at certain foreign subsidiaries regardless of whether that income is remitted to the U.S. The look-through rule provides an exception to this recognition for subsidiary passive income attributable to an active business. When the look-through rule is not in effect, we are required under ASC 740-30 to accrue a tax liability for certain foreign earnings as if those earnings were distributed. During 2013, the look-through rule exception was retroactively reinstated and then, effective January 1, 2014, it was again allowed to expire. For the three months ended June 30, 2014, the effective tax rate of 41.8% was higher than the 35% U.S. federal statutory rate due primarily to the expiration of the look-through rule and changes in state income tax rates. For the three months ended June 30, 2013, we reported a loss before income taxes and an effective tax benefit rate of 23.8%. This rate was lower than the 35% U.S. federal statutory rate due primarily to the impact of lower foreign tax rates on interim period tax expense. For the six months ended June 30, 2014, the effective tax rate of 68.9% was higher than the 35% U.S. federal statutory rate due primarily to the expiration of the look-through rule and the application of ASC 740-30 to our unremitted foreign earnings, along with increased tax on foreign dividends and an increase in the state income tax rate. For the six months ended June 30, 2013, we reported a loss before income taxes and an effective tax benefit rate of 19.3%. This rate was lower than the 35% U.S. federal statutory rate due primarily to the net impact on deferred tax of the look-through rule reinstatement, an increase to the state income tax rate and the effect of lower foreign tax rates on interim period tax expense. The total amount of unrecognized tax benefits was $4.6 million as of both June 30, 2014, and December 31, 2013, and these same amounts would affect the effective tax rate, if recognized. Most of the unrecognized tax benefit as of June 30, 2014 was presented in the balance sheet as a reduction to a deferred tax asset for a net operating loss carry-forward in connection with ASU 2013-11 that was adopted effective January 1, 2014. The accrued interest payable for taxes as of June 30, 2014, and December 31, 2013, was $0.8 million and $0.7 million, respectively. There was no significant liability for tax penalties as of June 30, 2014, or December 31, 2013. We are regularly audited by federal, state and foreign taxing authorities. Given the uncertainties inherent in the audit process, it is reasonably possible that certain audits could result in a significant increase or decrease in the total amounts of unrecognized tax benefits. |