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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income before income taxes and equity earnings is attributable to the following jurisdictions (in thousands):
|  | Year Ended December 31,
|  | 2016 |  | 2015 |  | 2014
United States |  | $ | 234,646 |  |  | $ | 203,269 |  |  | $ | 178,497 |
Foreign |  | 6,732 |  |  | 4,881 |  |  | 2,888 |
Total |  | $ | 241,378 |  |  | $ | 208,150 |  |  | $ | 181,385 |
The provision for income taxes consisted of the following (in thousands):
|  | Year Ended December 31,
|  | 2016 |  | 2015 |  | 2014
Current: |  |  |  |  |  |
Federal |  | $ | 77,000 |  |  | $ | 65,676 |  |  | $ | 54,447 |
State and other |  | 12,182 |  |  | 10,263 |  |  | 9,126 |
Total current provision for income taxes |  | 89,182 |  |  | 75,939 |  |  | 63,573 |
Deferred: |  |  |  |  |  |
Federal |  | 4,079 |  |  | 4,568 |  |  | 6,942 |
State and other |  | (330 | ) |  | (370 | ) |  | 44 |
Total deferred provision for income taxes |  | 3,749 |  |  | 4,198 |  |  | 6,986 |
Provision for income taxes |  | $ | 92,931 |  |  | $ | 80,137 |  |  | $ | 70,559 |
A reconciliation of the U.S. federal statutory tax rate to our effective tax rate on Income before income taxes and equity earnings is as follows:
|  | Year Ended December 31,
|  | 2016 |  | 2015 |  | 2014
Federal statutory rate |  | 35.00 | % |  | 35.00 | % |  | 35.00 | %
Change in valuation allowance |  | 0.10 |  |  | 0.20 |  |  | 0.43 |
Other, primarily state income tax rate |  | 3.40 |  |  | 3.30 |  |  | 3.47 |
Total effective tax rate |  | 38.50 | % |  | 38.50 | % |  | 38.90 | %
The table below presents the components of our deferred tax assets and liabilities (in thousands):
|  | December 31,
|  | 2016 |  | 2015
Deferred tax assets: |  |  |  |
Product inventories |  | $ | 7,010 |  |  | $ | 7,101 |
Accrued expenses |  | 3,978 |  |  | 3,303 |
Allowance for doubtful accounts |  | 396 |  |  | 606 |
Total current |  | 11,384 |  |  | 11,010 |
Component reclassified for net presentation |  | (5,368 | ) |  | (5,480 | )
Total current, net |  | 6,016 |  |  | 5,530 |
Leases |  | 1,920 |  |  | 1,786 |
Share-based compensation |  | 13,778 |  |  | 13,422 |
Uncertain tax positions |  | 2,746 |  |  | 2,092 |
Net operating losses |  | 5,735 |  |  | 5,485 |
Interest rate swaps |  | 674 |  |  | 1,513 |
Other |  | 2,465 |  |  | 1,159 |
Total non-current |  | 27,318 |  |  | 25,457 |
Less: Valuation allowance |  | (5,735 | ) |  | (5,485 | )
Component reclassified for net presentation |  | (20,781 | ) |  | (18,755 | )
Total non-current, net |  | 802 |  |  | 1,217 |
Total deferred tax assets |  | 6,818 |  |  | 6,747 |
Deferred tax liabilities: |  |  |  |  |  |
Trade discounts on purchases |  | 2,698 |  |  | 3,001 |
Prepaid expenses |  | 2,670 |  |  | 2,479 |
Total current |  | 5,368 |  |  | 5,480 |
Component reclassified for net presentation |  | (5,368 | ) |  | (5,480 | )
Total current, net |  | — |  |  | — |
Intangible assets, primarily goodwill |  | 42,930 |  |  | 40,197 |
Depreciation |  | 12,326 |  |  | 8,366 |
Total non-current |  | 55,256 |  |  | 48,563 |
Component reclassified for net presentation |  | (20,781 | ) |  | (18,755 | )
Total non-current, net |  | 34,475 |  |  | 29,808 |
Total deferred tax liabilities |  | 34,475 |  |  | 29,808 |
Net deferred tax liability |  | $ | 27,657 |  |  | $ | 23,061 |
At December 31, 2016, certain of our international subsidiaries had tax loss carryforwards totaling approximately $22.2 million, which expire in various years after 2017. Deferred tax assets related to the tax loss carryforwards of these international subsidiaries were $5.7 million as of December 31, 2016 and $5.5 million as of December 31, 2015. We have recorded a corresponding valuation allowance of $5.7 million and $5.5 million in the respective years. Upon adoption of ASU 2015-17, Balance Sheet Classification of Deferred Taxes, we will classify all deferred tax assets and liabilities as noncurrent on the balance sheet rather than separately presenting net deferred tax assets or liabilities as current or noncurrent. Also, we will no longer allocate valuation allowances between current and noncurrent deferred tax assets because those allowances will also be required to be classified as noncurrent. ASU 2015-17 will be effective for annual periods beginning after December 15, 2016, which for us will be in the period beginning January 1, 2017. We do not expect the adoption of ASU 2015-17 will have an impact on our results of operations, but it will change the presentation of our financial position and disclosures related to deferred tax assets and liabilities. We reduce federal and state income taxes payable by the tax benefits associated with the exercise of nonqualified stock options and the lapse of restrictions on restricted stock awards. To the extent realized tax deductions exceed the amount of previously recognized deferred tax benefits related to share-based compensation, we record an excess tax benefit in stockholders’ equity. We recorded excess tax benefits of $7.4 million in 2016 and $7.7 million in 2015. Upon adoption of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, we will be required to record all excess tax benefits or deficiencies as income tax benefit or expense in the income statement. The adoption of this guidance will likely have a material positive impact on our income tax provision in periods in which employees elect to exercise their vested stock options or restrictions on share-based awards lapse. ASU 2016-09 will be effective for annual periods beginning after December 15, 2016, which for us will be in the period beginning January 1, 2017. As of December 31, 2016, United States income taxes were not provided on earnings of our foreign subsidiaries, as we have invested or expect to invest the undistributed earnings indefinitely. If in the future these earnings are repatriated to the United States, or if we determine that the earnings will be remitted in the foreseeable future, additional income tax provisions may be required. Determining the amount of unrecognized deferred tax liability on these undistributed earnings is not practicable due to the complexity of tax laws and regulations and the varying circumstances, tax treatments and timing of any future repatriation. We hold, through our affiliates, cash balances in the countries in which we operate, including amounts held outside the United States. Most of the amounts held outside the United States could be repatriated to the United States, but, under current law, may be subject to United States federal income taxes, less applicable foreign tax credits. Repatriation of some foreign balances is restricted by local laws including the imposition of withholding taxes in some jurisdictions. We have not provided for the United States federal tax liability on these amounts, and for financial statement purposes, these foreign cash balances are considered indefinitely reinvested as of December 31, 2016 and are intended to be used to fund current cash flow needs in the countries where held. The following table summarizes the activity related to uncertain tax positions for the past three years (in thousands):
|  | 2016 |  | 2015 |  | 2014
Balance at beginning of year |  | $ | 5,978 |  |  | $ | 4,690 |  |  | $ | 3,837 |
Increases for tax positions taken during a prior period |  | 10 |  |  | 410 |  |  | — |
Increases for tax positions taken during the current period |  | 2,819 |  |  | 1,782 |  |  | 1,664 |
Decreases resulting from the expiration of the statute of limitations |  | 961 |  |  | 904 |  |  | 811 |
Decreases relating to settlements |  | — |  |  | — |  |  | — |
Balance at end of year |  | $ | 7,846 |  |  | $ | 5,978 |  |  | $ | 4,690 |
The total amount of unrecognized tax benefits that, if recognized, would decrease the effective tax rate was $5.1 million at December 31, 2016 and $3.9 million at December 31, 2015. We record interest expense related to unrecognized tax benefits in Interest and other non-operating expenses, net, while we record related penalties in Selling and administrative expenses on our Consolidated Statements of Income. For unrecognized tax benefits, we had interest expense of $0.2 million in 2016, interest expense $0.1 million in 2015 and minimal interest expense in 2014. Accrued interest related to unrecognized tax benefits was approximately $0.7 million at December 31, 2016 and $0.5 million at December 31, 2015. We file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. With few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2013.

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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 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
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