XML 30 R17.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2016
Income Taxes |
Income Taxes | Note 9. Income Taxes Reliance and its subsidiaries file numerous consolidated and separate income tax returns in the United States federal jurisdiction and in many state and foreign jurisdictions. We are no longer subject to U.S. federal tax examinations for years before 2013 and state and local tax examinations before 2012. Significant components of the provision for income taxes attributable to continuing operations were as follows:
| Year Ended December 31,
| 2016 |  | 2015 |  | 2014
| (in millions)
Current: |  |  |  |  |  |  |  |
Federal | $ | 91.1 |  | $ | 129.5 |  | $ | 153.2
State |  | 18.9 |  |  | 21.3 |  |  | 25.2
Foreign |  | 10.6 |  |  | 8.8 |  |  | 9.8
|  | 120.6 |  |  | 159.6 |  |  | 188.2
Deferred: |  |  |  |  |  |  |  |
Federal |  | 3.0 |  |  | (11.7) |  |  | (18.7)
State |  | 1.0 |  |  | (4.5) |  |  | (2.2)
Foreign |  | (4.5) |  |  | (0.9) |  |  | 2.7
|  | (0.5) |  |  | (17.1) |  |  | (18.2)
| $ | 120.1 |  | $ | 142.5 |  | $ | 170.0
Components of U.S. and international income before income taxes were as follows:
| Year Ended December 31,
| 2016 |  | 2015 |  | 2014
| (in millions)
U.S. | $ | 411.0 |  | $ | 427.3 |  | $ | 488.5
International |  | 18.2 |  |  | 31.4 |  |  | 57.8
Income before income taxes | $ | 429.2 |  | $ | 458.7 |  | $ | 546.3
The reconciliation of income tax at the U.S. federal statutory tax rates to income tax expense is as follows:
| Year Ended December 31, |
| 2016 |  | 2015 |  | 2014 |
Income tax at U.S. federal statutory tax rate | 35.0 | % | 35.0 | % | 35.0 | %
State income tax, net of federal tax effect | 3.1 |  | 2.0 |  | 2.6 |
Foreign earnings taxed at lower rates | (0.8) |  | (0.8) |  | (1.9) |
Net effect of life insurance policies | (4.2) |  | (3.6) |  | (2.6) |
Net effect of changes in unrecognized tax benefits | (4.3) |  | 0.7 |  | 0.2 |
Domestic production activity deduction | (1.7) |  | (2.0) |  | (1.7) |
Other, net | 0.9 |  | (0.2) |  | (0.5) |
Effective tax rate | 28.0 | % | 31.1 | % | 31.1 | %
Significant components of our deferred tax assets and liabilities are as follows:
| December 31,
| 2016 |  | 2015
| (in millions)
Deferred tax assets: |  |  |  |  |
Accrued expenses not currently deductible for tax | $ | 77.6 |  | $ | 75.0
Inventory costs capitalized for tax purposes |  | 29.2 |  |  | 27.1
Stock-based compensation |  | 12.0 |  |  | 17.1
Allowance for doubtful accounts |  | 5.3 |  |  | 5.5
Tax credits carryforwards |  | 1.3 |  |  | 1.1
Net operating loss carryforwards |  | 4.7 |  |  | 5.4
Total deferred tax assets |  | 130.1 |  |  | 131.2
Deferred tax liabilities: |  |  |  |  |
Property, plant and equipment, net |  | (238.6) |  |  | (245.5)
Goodwill and other intangible assets |  | (451.2) |  |  | (458.2)
LIFO inventories |  | (54.1) |  |  | (34.0)
Deferred income |  | (7.1) |  |  | (13.4)
Other |  | (6.0) |  |  | (7.2)
Total deferred tax liabilities |  | (757.0) |  |  | (758.3)
Net deferred tax liabilities | $ | (626.9) |  | $ | (627.1)
As of December 31, 2016, we had available state net operating loss carryforwards (“NOL”) of $6.3 million to offset future income taxes expiring in years 2017 through 2036. We believe that it is more likely than not that we will be able to realize these NOL’s within their respective carryforward periods. The Company believes it is more likely than not that it will generate sufficient future taxable income to realize its deferred tax assets. Taxes on Foreign Income Unremitted earnings of foreign subsidiaries on which no U.S. taxes have been provided were $209.3 million as of December 31, 2016. Our intention is to indefinitely reinvest these earnings outside the United States. It is not practicable to estimate the amount of additional taxes that would be payable upon repatriation of foreign earnings. Unrecognized Tax Benefits We are under audit by various state jurisdictions but do not anticipate any material adjustments from these examinations. Reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits is as follows:
| Year Ended December 31,
| 2016 |  | 2015 |  | 2014
| (in millions)
Unrecognized tax benefits at January 1 | $ | 22.9 |  | $ | 20.2 |  | $ | 19.4
Increases in tax positions for prior years |  | 0.4 |  |  | 0.3 |  |  | 0.3
Decreases in tax positions for prior years |  | (0.6) |  |  | (1.7) |  |  | (0.4)
Increases in tax positions for current year |  | 0.1 |  |  | 4.2 |  |  | 3.8
Settlements |  | (17.6) |  |  | (0.1) |  |  | (0.1)
Lapses in statutes-of-limitation periods |  | — |  |  | — |  |  | (2.8)
Unrecognized tax benefits at December 31 | $ | 5.2 |  | $ | 22.9 |  | $ | 20.2
As of December 31, 2016, $5.2 million of unrecognized tax benefits would impact the effective tax rate if recognized. Accrued interest and penalties, net of applicable tax effect, related to uncertain tax positions were $0.7 million and $1.3 million as of December 31, 2016 and 2015, respectively.

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