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Income Taxes Level 1 (Notes) | 12 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | Income Taxes The provision or benefit for income taxes includes U.S. federal income taxes (determined on a consolidated return basis), foreign income taxes, and state 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 by, among other things, reducing the federal corporate income tax rate, requiring payment of a one-time transition tax on unrepatriated earnings of foreign subsidiaries, generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries, creating a new limitation on deductible interest expense, creating a bonus depreciation that will allow for full expensing on qualified property, and imposing limitation on deductibility of certain executive compensation. The Tax Act reduces the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. As a result of the reduction in the U.S. corporate income tax rate, we re-measured our ending net deferred tax liabilities at December 31, 2017 at the rate at which they are expected to reverse in the future and recognized a provisional tax benefit of $168.4 million. We are still analyzing certain aspects of the Tax Act, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. The Tax Act provided for a one-time deemed mandatory repatriation of post-1986 undistributed foreign E&P through the year ended December 31, 2017. We had an estimated $195.1 million of undistributed foreign E&P subject to the deemed mandatory repatriation and recognized a provisional $22.2 million of income tax expense, payable over eight years. As of December 31, 2017, foreign withholding taxes have not been provided on the undistributed E&P of our foreign subsidiaries as we intend to permanently reinvest these foreign earnings in those businesses outside the U.S. However, if we were to repatriate such foreign E&P, the foreign withholding tax liability is estimated to be $10 million. We have calculated our best estimate of the impact of this provision in accordance with our understanding of the Tax Act and guidance available as of the date of this filing. Beginning in 2018, the Tax Act includes a new U.S. tax base erosion provision designed to tax the global intangible low-taxed income (“GILTI”). The GILTI provisions require us to include in our U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary’s tangible assets. We do not expect GILTI to be material in the future. We have not yet adopted an accounting policy for GILTI pursuant to the recent guidance under SAB 118. In accordance with SAB 118, we have recognized the provisional tax impacts related to deemed repatriated earnings and the remeasurement of deferred tax assets and liabilities and included these amounts in our consolidated financial statements for the year ended December 31, 2017. The ultimate impact may differ from these provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions we have made, additional regulatory guidance that may be issued, and actions we may take as a result of the Tax Act. Income from continuing operations before income taxes for the years ended December 31 was composed of the following components:
| 2017 |  | 2016 |  | 2015
| (In thousands)
United States | $ | 347,680 |  |  | $ | 287,946 |  |  | $ | 331,622 |
Foreign | 52,578 |  |  | 38,712 |  |  | 38,729 |
| $ | 400,258 |  |  | $ | 326,658 |  |  | $ | 370,351 |
Income tax (benefit) provision for the years ended December 31 consisted of the following:
| 2017 |  | 2016 |  | 2015
| (In thousands)
Current: |  |  |  |  |  |  |  |
United States | $ | 154,128 |  |  | $ | 113,629 |  |  | $ | 94,502 |
Foreign | 12,187 |  |  | 12,084 |  |  | 9,270 |
State | 4,934 |  |  | 16,150 |  |  | 13,207 |
Total current income taxes | 171,249 |  |  | 141,863 |  |  | 116,979 |
Deferred: |  |  |  |  |  |  |  |
United States | $ | (314,389 | ) |  | $ | (19,496 | ) |  | $ | 15,918 |
Foreign | 618 |  |  | 22,708 |  |  | (878 | )
State | (4,067 | ) |  | 4,278 |  |  | 3,008 |
Total deferred income taxes | (317,838 | ) |  | 7,490 |  |  | 18,048 |
Total income taxes | $ | (146,589 | ) |  | $ | 149,353 |  |  | $ | 135,027 |
We made income tax payments of $170.2 million, $115.0 million, and $105.4 million in 2017, 2016, and 2015, respectively, and received refunds of $3.4 million, $2.4 million, and $1.9 million, respectively. The income tax payments for 2017 include $34.2 million settlement payments to the IRS. The differences between the U.S. federal statutory income tax rate and our effective tax rate for the years ended December 31 were as follows:
| 2017 |  | 2016 |  | 2015
| (In thousands)
Computed tax provision at the applicable federal statutory income tax rate | $ | 140,090 |  |  | $ | 114,331 |  |  | $ | 129,623 |
State and local taxes, net of federal income tax benefits | 8,216 |  |  | 13,279 |  |  | 10,542 |
Foreign jurisdiction differences | (6,782 | ) |  | (2,557 | ) |  | (5,183 | )
Permanent differences associated with divestitures | 1,925 |  |  | 9,267 |  |  | 2,909 |
Changes in uncertain tax positions and audit settlements | (105,821 | ) |  | 5,669 |  |  | 4,046 |
Foreign valuation allowance, net of federal income tax benefits | 1,186 |  |  | 15,850 |  |  | — |
Enactment of US Tax Reform | (146,160 | ) |  | — |  |  | — |
Excess tax benefit from share-based compensation | (18,521 | ) |  | — |  |  | — |
Other | (20,722 | ) |  | (6,486 | ) |  | (6,910 | )
(Benefit from) Provision for income taxes | $ | (146,589 | ) |  | $ | 149,353 |  |  | $ | 135,027 |
Total consolidated effective tax rate | (36.6 | )% |  | 45.7 | % |  | 36.5 | %
The lower effective tax rate for the twelve months ended December 31, 2017 was primarily due to the effects of the Tax Act discussed above, and the recent IRS audit settlement as well as the result of tax benefits recognized on the settlement of employee share-based awards from the adoption of new accounting guidance in the first quarter of 2017 (See Note 2 for further information). The higher effective tax rate for the twelve months ended December 31, 2016 was a result of a valuation allowance recorded against foreign net deferred tax assets for which a future net benefit may not be realized, and non-deductible goodwill resulting from gains on divestitures. Deferred taxes are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates. The tax effects of temporary differences and carryforwards that give rise to significant portions of deferred tax assets and liabilities as of December 31 consisted of the following:
| 2017 |  | 2016
| (In thousands)
Inventories and cemetery property | $ | (222,431 | ) |  | $ | (335,795 | )
Property and equipment | (109,631 | ) |  | (149,450 | )
Intangibles | (194,159 | ) |  | (294,251 | )
Other | (4,902 | ) |  | (6,980 | )
Deferred tax liabilities | (531,123 | ) |  | (786,476 | )
Loss and tax credit carryforwards | 170,979 |  |  | 157,795 |
Deferred revenue on preneed funeral and cemetery contracts | 155,679 |  |  | 223,174 |
Accrued liabilities | 62,727 |  |  | 84,230 |
Deferred tax assets | 389,385 |  |  | 465,199 |
Less: Valuation allowance | (141,154 | ) |  | (132,500 | )
Net deferred income tax liability | $ | (282,892 | ) |  | $ | (453,777 | )
Deferred tax assets and deferred income tax liabilities are recognized in our Consolidated Balance Sheet at December 31 as follows:
| 2017 |  | 2016
| (In thousands)
Non-current deferred tax assets | $ | 873 |  |  | $ | 861 |
Non-current deferred tax liabilities | (283,765 | ) |  | (454,638 | )
Net deferred income tax liability | $ | (282,892 | ) |  | $ | (453,777 | )
The following table summarizes the activity related to our gross unrecognized tax benefits from January 1, 2015 to December 31, 2017 (in thousands):
| Federal, State, and Foreign Tax
| (In thousands)
Balance at December 31, 2014 | $ | 191,680 |
Additions to tax positions related to the current year | 3,235 |
Reductions to tax positions related to prior years | (12,370 | )
Balance at December 31, 2015 | $ | 182,545 |
Reduction to tax positions related to prior years | (4,219 | )
Balance at December 31, 2016 | $ | 178,326 |
Reductions to tax positions as a result of audit settlement | (30,333 | )
Reductions to tax positions related to prior years | $ | (68,538 | )
Balance at December 31, 2017 | $ | 79,455 |
Our total unrecognized tax benefits that, if recognized, would affect our effective tax rates were $79.5 million, $161.8 million, and $157.2 million as of December 31, 2017, 2016, and 2015, respectively. We include potential accrued interest and penalties related to unrecognized tax benefits within our income tax provision account. We have accrued $11.1 million, $57.3 million, and $51.6 million for the payment of interest, net of tax benefits, and penalties as of December 31, 2017, 2016, and 2015, respectively. We recorded a decrease of interest and penalties of $46.2 million, and an increase of $5.7 million, and $4.0 million for the years ended December 31, 2017, 2016, and 2015, respectively. To the extent interest and penalties are not assessed with respect to uncertain tax positions or the uncertainty of deductions in the future, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision. We file income tax returns, including tax returns for our subsidiaries, with federal, state, local, and foreign jurisdictions. We consider the United States to be our most significant jurisdiction; however, all tax returns are subject to routine compliance review by the taxing authorities in the jurisdictions in which we file tax returns in the ordinary course of business. In March 2017, we received from the IRS Office of Appeals the fully executed Form 870-AD for the years 1999-2005, which effectively settled the issues under audit for those years. As a result of this resolution, we recognized a reduction in our unrecognized tax benefits of $143.0 million, of which $102.5 million was recognized as an income tax benefit for the matters that were effectively settled with an increase in our taxes payable of $40.5 million. In June 2017, we made $34.2 million in settlement payments and associated interest to the IRS. Tax years subsequent to 2005 remain open to review and adjustment by the IRS. Moreover, various state jurisdictions are auditing years 2000 through 2016. It is reasonably possible that the amount of unrecognized tax benefits could significantly decrease over the next 12 months. However, since the years to which uncertain tax positions relate remain subject to review by the tax authorities, a current estimate of the range of decrease that may occur within the next 12 months cannot be made. Various subsidiaries have state and foreign loss carryforwards in the aggregate of $3.8 billion with expiration dates through 2032. Such loss carryforwards will expire as follows:
| Federal |  | State |  | Foreign |  | Total
| (In thousands)
2018 | $ | — |  |  | $ | 108,312 |  |  | $ | — |  |  | $ | 108,312 |
2019 | — |  |  | 127,914 |  |  | — |  |  | 127,914 |
2020 | — |  |  | 176,591 |  |  | — |  |  | 176,591 |
2021 | — |  |  | 158,672 |  |  | — |  |  | 158,672 |
Thereafter | — |  |  | 3,232,606 |  |  | 7,151 |  |  | 3,239,757 |
Total | $ | — |  |  | $ | 3,804,095 |  |  | $ | 7,151 |  |  | $ | 3,811,246 |
In addition to the above loss carryforwards, we have $58.4 million of foreign losses that have an indefinite expiration. In assessing the usefulness of deferred tax assets, we consider whether it is more likely than not that some portion or all of the net deferred tax assets will not be realized. The ultimate realization of net deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. During 2017, we recorded a net $3.2 million increase in state valuation allowance, due primarily to the reduction of federal benefit related to the new lower federal tax rate, partially offset by state net operating loss expirations. We also recorded a $4.8 million increase in foreign valuation allowance, due primarily to the effects of the federal tax rate reduction. The valuation allowances can be affected in future periods by changes to tax laws, changes to statutory tax rates, and changes in estimates of future taxable income. At December 31, 2017, our loss and tax credit carryforward deferred tax assets and related valuation allowances by jurisdiction are as follows (presented net of federal benefit):
| Federal |  | State |  | Foreign |  | Total
|  |  | (In thousands) |  |
Loss and tax credit carryforwards | $ | — |  |  | $ | 150,031 |  |  | $ | 20,948 |  |  | $ | 170,979 |
Valuation allowance | $ | — |  |  | $ | 104,637 |  |  | $ | 36,517 |  |  | $ | 141,154 |

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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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