XML 46 R32.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2016
Components Of Income Tax Expense Benefit Continuing Operations [Abstract] |
Income Taxes | NOTE 24 – Income Taxes The provision for income taxes consists of the following (in thousands):
|  | Year Ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Current taxes: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 7,927 |  |  | $ | 43,962 |  |  | $ | 100,262 |
State |  |  | 5,818 |  |  |  | 9,672 |  |  |  | 21,835 |
Foreign |  |  | 1,255 |  |  |  | 1,329 |  |  |  | (1,831 | )
|  |  | 15,000 |  |  |  | 54,963 |  |  |  | 120,266 |
Deferred taxes: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 39,127 |  |  |  | (9,396 | ) |  |  | (275 | )
State |  |  | 6,261 |  |  |  | 3,056 |  |  |  | (8,064 | )
Foreign |  |  | 674 |  |  |  | 608 |  |  |  | (263 | )
|  |  | 46,062 |  |  |  | (5,732 | ) |  |  | (8,602 | )
Provision for income taxes |  | $ | 61,062 |  |  | $ | 49,231 |  |  | $ | 111,664 |
Reconciliation of the statutory federal income tax rate with our company’s effective income tax rate is as follows (in thousands):
|  | Year Ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Statutory rate |  | $ | 49,904 |  |  | $ | 49,548 |  |  | $ | 101,778 |
State income taxes, net of federal income tax |  |  | 7,688 |  |  |  | 7,908 |  |  |  | 14,860 |
Change in valuation allowance |  |  | (229 | ) |  |  | 535 |  |  |  | (2,433 | )
Provision to return |  |  | (204 | ) |  |  | 904 |  |  |  | (2,956 | )
Investment in subsidiary |  |  | — |  |  |  | (4,800 | ) |  |  | — |
Change in uncertain tax position |  |  | 41 |  |  |  | (3,903 | ) |  |  | 276 |
Non-deductible litigation expense |  |  | 7,700 |  |  |  | — |  |  |  | — |
Foreign tax rate difference |  |  | (1,810 | ) |  |  | (106 | ) |  |  | 90 |
Other, net |  |  | (2,028 | ) |  |  | (855 | ) |  |  | 49 |
|  | $ | 61,062 |  |  | $ | 49,231 |  |  | $ | 111,664 |
Tax effect of temporary differences and carryforwards that comprise significant portions of deferred tax assets and liabilities (in thousands):
|  | December 31, |
|  | 2016 |  |  | 2015 |
Deferred tax assets: |  |  |  |  |  |  |  |
Deferred compensation |  | $ | 181,575 |  |  | $ | 173,759 |
Net operating loss carryforwards |  |  | 40,266 |  |  |  | 48,831 |
Accrued expenses |  |  | 35,443 |  |  |  | 65,451 |
Unrealized loss on investments |  |  | — |  |  |  | 27,769 |
Depreciation |  |  | 12,550 |  |  |  | 10,055 |
Receivable reserves |  |  | 22,870 |  |  |  | 16,343 |
Total deferred tax assets |  |  | 292,704 |  |  |  | 342,208 |
Valuation allowance |  |  | (8,768 | ) |  |  | (12,738 | )
|  |  | 283,936 |  |  |  | 329,470 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Goodwill and other intangibles |  |  | (49,481 | ) |  |  | (33,437 | )
Change in accounting method |  |  | — |  |  |  | (625 | )
Prepaid expenses |  |  | (4,557 | ) |  |  | (4,211 | )
Unrealized gain on investments |  |  | (1,459 | ) |  |  | — |
Other |  |  | (2,986 | ) |  |  | (6,070 | )
|  |  | (58,483 | ) |  |  | (44,343 | )
Net deferred tax asset |  | $ | 225,453 |  |  | $ | 285,127 |
Our net deferred tax asset at December 31, 2016, includes net operating loss carryforwards of $312.2 million that expire between 2020 and 2035. Certain of our net operating loss carryforwards do not expire. A valuation allowance is recorded to the extent that it is more likely than not that any portion of the deferred tax asset will not be realized. The valuation allowance was decreased by $4.0 million as an inactive foreign entity was formally dissolved. We believe the realization of the remaining net deferred tax asset of $225.5 million is more likely than not based on the ability to carry back losses against prior year taxable income and expectations of future taxable income. The current tax payable, included in accounts payable and accrued expenses, is a payable of $16.0 million and a receivable of $1.0 million as of December 31, 2016 and 2015, respectively. We have recorded income tax expense at U.S. tax rates on all profits, except for undistributed profits of our foreign subsidiaries that are considered indefinitely reinvested. Determination of the amount of unrecognized deferred tax liability related to indefinitely reinvested profits is not feasible. If management’s intentions or U.S. tax laws change in the future, there may be a significant impact on the provision for income taxes to record a change in the tax liability in the period the change occurs. Uncertain Tax Positions As of December 31, 2016 and 2015, we had $1.8 million and $2.7 million, respectively, of gross unrecognized tax benefits, all of which, if recognized, would impact the effective tax rate. We recognize interest and penalties related to uncertain tax positions in provision for income taxes in the consolidated statements of operations. As of December 31, 2016 and 2015, we had accrued interest and penalties of $0.7 million and $0.8 million, respectively, before benefit of federal tax deduction, included in accounts payable and accrued expenses on our consolidated statements of financial condition. The amount of interest and penalties recognized on our consolidated statements of operations for the years ended December 31, 2016, 2015, and 2014, was not significant. The following table summarizes the activity related to our company’s unrecognized tax benefits from January 1, 2014 to December 31, 2016 (in thousands):
|  | Year Ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Beginning balance |  | $ | 2,717 |  |  | $ | 5,510 |  |  | $ | 5,158 |
Increase related to prior year tax positions |  |  | 5 |  |  |  | 1,206 |  |  |  | 627 |
Decrease related to prior year tax positions |  |  | (31 | ) |  |  | (33 | ) |  |  | (443 | )
Increase related to current year tax positions |  |  | — |  |  |  | — |  |  |  | 294 |
Decrease related to settlements with taxing authorities |  |  | (42 | ) |  |  | (4,815 | ) |  |  | (126 | )
Decrease related to lapsing of statute of limitations |  |  | — |  |  |  | — |  |  |  | — |
Increase/(decrease) related to business acquisitions |  |  | (849 | ) |  |  | 849 |  |  |  | — |
Ending balance |  | $ | 1,800 |  |  | $ | 2,717 |  |  | $ | 5,510 |
We file income tax returns with the U.S. federal jurisdiction, various states, and certain foreign jurisdictions. We are not subject to U.S. federal examination for taxable years before 2012. We are not subject to certain state and local, or non-U.S. income tax examinations for taxable years before 2008. There is a reasonable possibility that the unrecognized tax benefits will change within the next 12 months as a result of the expiration of various statutes of limitations or for the resolution of U.S. federal and state examinations, but we do not expect this change to be material to the consolidated financial statements.

X
- References No definition available. + Details
Name: | us-gaap_ComponentsOfIncomeTaxExpenseBenefitContinuingOperationsAbstract
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