v2.4.0.8

Income taxes | 12 Months Ended
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Dec. 31, 2013
Income taxes |
13. | Income taxes
The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Income tax expense (benefit) consisted of the following:
|  | Year ended December 31, |
|  | 2013 |  |  | 2012 |  |  | 2011 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 334,258 |  |  | $ | 239,232 |  |  | $ | 202,733 |
State |  |  | 68,715 |  |  |  | 49,178 |  |  |  | 42,191 |
International |  |  | 1,764 |  |  |  | 660 |  |  |  | — |
Total current income tax |  | $ | 404,737 |  |  | $ | 289,070 |  |  | $ | 244,924 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (6,695 | ) |  |  | 64,195 |  |  |  | 63,661 |
State |  |  | (8,941 | ) |  |  | 6,498 |  |  |  | 7,140 |
International |  |  | 746 |  |  |  | — |  |  |  | — |
Total deferred income tax |  | $ | (14,890 | ) |  | $ | 70,693 |  |  | $ | 70,801 |
|  | $ | 389,847 |  |  | $ | 359,763 |  |  | $ | 315,725 |
The allocation of income tax expense (benefit) was as follows:
|  | Year ended December 31, |
|  | 2013 |  |  | 2012 |  |  | 2011 |
Continuing operations |  | $ | 381,013 |  |  | $ | 359,845 |  |  | $ | 325,292 |
Discontinued operations |  |  | (84 | ) |  |  | (82 | ) |  |  | (8,873 | )
Gain (loss) on discontinued operations |  |  | 8,918 |  |  |  | — |  |  |  | (694 | )
|  | $ | 389,847 |  |  | $ | 359,763 |  |  | $ | 315,725 |
The reconciliation between the Company’s effective tax rate from continuing operations and the U.S. federal income tax rate is as follows:
|  | Year ended December 31, |
|  | 2013 |  |  | 2012 |  |  | 2011 |
Federal income tax rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
State income taxes, net of federal benefit |  |  | 3.8 |  |  |  | 4.0 |  |  |  | 4.1 |
International rate differential |  |  | 0.1 |  |  |  | — |  |  |  | — |
Changes in deferred tax valuation allowances |  |  | 0.3 |  |  |  | — |  |  |  | (0.3 | )
Contingent earn-out adjustments |  |  | (2.6 | ) |  |  | — |  |  |  | — |
Other |  |  | 1.4 |  |  |  | 1.1 |  |  |  | 0.9 |
Impact of noncontrolling interests primarily attributable to non-tax paying entities |  |  | (4.1 | ) |  |  | (4.2 | ) |  |  | (4.2 | )
Effective tax rate |  |  | 33.9 | % |  |  | 35.9 | % |  |  | 35.5 | %
The Company has not recognized any deferred taxes for the undistributed earnings of its foreign subsidiaries because the Company currently expects those earnings to be permanently reinvested. Determination of the amount of unrecognized deferred taxes related to undistributed earnings of foreign subsidiaries is not practicable because such liability, if any, is dependent on circumstances that will exist if and when remittance occurs. Deferred tax assets and liabilities arising from temporary differences associated with continuing operations were as follows:
|  | December 31, |
|  | 2013 |  |  | 2012 |
Receivables |  | $ | 63,001 |  |  | $ | 126,263 |
Accrued liabilities |  |  | 258,562 |  |  |  | 231,500 |
Loss contingency reserve |  |  | 139,844 |  |  |  | — |
Net operating loss carryforwards |  |  | 96,212 |  |  |  | 103,458 |
Other |  |  | 66,839 |  |  |  | 55,488 |
Deferred tax assets |  |  | 624,458 |  |  |  | 516,709 |
Valuation allowance |  |  | (13,860 | ) |  |  | (12,585 | )
Net deferred tax assets |  |  | 610,598 |  |  |  | 504,124 |
Intangible assets |  |  | (798,106 | ) |  |  | (698,480 | )
Property and equipment |  |  | (210,008 | ) |  |  | (186,374 | )
Other |  |  | (5,462 | ) |  |  | (10,780 | )
Deferred tax liabilities |  |  | (1,013,576 | ) |  |  | (895,634 | )
Net deferred tax liabilities |  | $ | (402,978 | ) |  | $ | (391,510 | )
At December 31, 2013, the Company had federal net operating loss carryforwards of approximately $231,711 that expire through 2033, although a substantial amount expire by 2028. The Company also had state net operating loss carryforwards of $263,461 that expire through 2033 and international net operating loss carryforwards of $17,751, some of which have an indefinite life. The utilization of a portion of these losses may be limited in future years based on the profitability of certain entities. The valuation allowance increase of $1,275 is primarily due to the realizability of losses in certain foreign jurisdictions. Unrecognized tax benefits A reconciliation of the beginning and ending liability for unrecognized tax benefits that do not meet the more-likely-than-not threshold were as follows:
|  | Year ended December 31, |
|  | 2013 |  |  | 2012 |
Balance beginning |  | $ | 67,546 |  |  | $ | 8,943 |
Additions for tax positions related to current year |  |  | 6,005 |  |  |  | 2,102 |
(Reductions) additions for tax positions related to prior years |  |  | (3,901 | ) |  |  | 58,442 |
Reductions related to lapse of applicable statute |  |  | (8,480 | ) |  |  | (1,941 | )
Reductions related to settlements with taxing authorities |  |  | (632 | ) |  |  | — |
Balance ending |  | $ | 60,538 |  |  | $ | 67,546 |
The additions for tax positions related to prior years represent acquired tax reserves. As of December 31, 2013, the Company’s total liability for unrecognized tax benefits relating to tax positions that do not meet the more-likely-than-not threshold is $60,538, of which $33,758 would impact the Company’s effective tax rate if recognized. This balance represents a decrease of $7,008 from the December 31, 2012 balance of $67,546, primarily due to statute lapses and the filing of accounting method changes. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in its income tax expense. At December 31, 2013 and 2012, the Company had approximately $10,742 and $12,073, respectively, accrued for interest and penalties related to unrecognized tax benefits, net of federal tax benefit. As of December 31, 2013, it is reasonably possible that $26,779 of unrecognized tax benefits may be recognized within the next twelve months, primarily related to the filing of tax accounting method changes. The Company and its subsidiaries file U.S. federal and state income tax returns and various international income tax returns. The Company is no longer subject to U.S. federal and state examinations by tax authorities for years before 2010 and 2006, respectively.

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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 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: 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 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 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=6907707&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=6907707&loc=d3e32537-109319 Reference 6: 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=6907707&loc=d3e32559-109319 + Details
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