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Income taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
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 before income taxes consisted of the following:
|  | Year ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Domestic |  | $ | 1,144,544 |  |  | $ | 764,998 |  |  | $ | 1,341,208 |
International |  |  | 344,351 |  |  |  | (41,862 | ) |  |  | (31,535 | )
|  | $ | 1,488,895 |  |  | $ | 723,136 |  |  | $ | 1,309,673 |
Income tax expense (benefit) consisted of the following:
|  | Year ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 337,178 |  |  | $ | 183,263 |  |  | $ | 188,302 |
State |  |  | 48,771 |  |  |  | 30,766 |  |  |  | 30,789 |
International |  |  | 1,928 |  |  |  | 856 |  |  |  | 1,687 |
Total current income tax |  | $ | 387,877 |  |  | $ | 214,885 |  |  | $ | 220,778 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 93,214 |  |  |  | 88,718 |  |  |  | 192,267 |
State |  |  | (27,764 | ) |  |  | (8,307 | ) |  |  | 32,360 |
International |  |  | 2,486 |  |  |  | 430 |  |  |  | 938 |
Total deferred income tax |  | $ | 67,936 |  |  | $ | 80,841 |  |  | $ | 225,565 |
|  | $ | 455,813 |  |  | $ | 295,726 |  |  | $ | 446,343 |
The reconciliation between the U.S. federal income tax rate and the Company’s effective tax rate is as follows:
|  | Year ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Federal income tax rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
State income taxes, net of federal benefit |  |  | 1.2 |  |  |  | 2.5 |  |  |  | 3.5 |
International rate differential |  |  | 0.2 |  |  |  | (1.1 | ) |  |  | (0.2 | )
Gain on APAC JV ownership changes |  |  | (9.8 | ) |  |  | — |  |  |  | — |
Goodwill impairments |  |  | 6.7 |  |  |  | 11.7 |  |  |  | — |
Changes in deferred tax valuation allowances |  |  | 0.6 |  |  |  | 2.6 |  |  |  | 0.6 |
Other |  |  | 0.2 |  |  |  | 1.5 |  |  |  | (0.8 | )
Impact of noncontrolling interests primarily attributable to non-tax paying entities |  |  | (3.5 | ) |  |  | (11.3 | ) |  |  | (4.0 | )
Effective tax rate |  |  | 30.6 | % |  |  | 40.9 | % |  |  | 34.1 | %
The Company has indefinitely reinvested $381,523 of undistributed earnings of its foreign operations outside of the United States as of December 31, 2016. Included in this undistributed earnings amount is a non-taxable gain on the APAC JV ownership changes in the amount of $374,374. No deferred tax liability has been recognized for the remittance of such earnings to the U.S. since it is the Company’s intention to utilize these earnings in its foreign operations. The determination of the amount of deferred taxes on these earnings is not practicable since the computation would depend on a number of factors that cannot be known unless a decision is made to repatriate the earnings. Deferred tax assets and liabilities arising from temporary differences were as follows:
|  | December 31, |
|  | 2016 |  |  | 2015 |
Receivables |  | $ | 19,283 |  |  | $ | 43,393 |
Accrued liabilities |  |  | 318,596 |  |  |  | 272,080 |
Net operating loss carryforwards |  |  | 130,456 |  |  |  | 130,977 |
Other |  |  | 147,487 |  |  |  | 114,805 |
Deferred tax assets |  |  | 615,822 |  |  |  | 561,255 |
Valuation allowance |  |  | (56,016 | ) |  |  | (57,811 | )
Net deferred tax assets |  |  | 559,806 |  |  |  | 503,444 |
Intangible assets |  |  | (1,025,488 | ) |  |  | (927,761 | )
Property and equipment |  |  | (230,870 | ) |  |  | (205,071 | )
Investments in partnerships |  |  | (95,936 | ) |  |  | (83,584 | )
Other |  |  | (16,640 | ) |  |  | (13,990 | )
Deferred tax liabilities |  |  | (1,368,934 | ) |  |  | (1,230,406 | )
Net deferred tax liabilities |  | $ | (809,128 | ) |  | $ | (726,962 | )
At December 31, 2016, the Company had federal net operating loss carryforwards of approximately $155,790 that expire through 2035, although a substantial amount expire by 2028. The Company also had state net operating loss carryforwards of $836,774 that expire through 2036 and international net operating loss carryforwards of $97,281, 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 net decrease of $1,795 is primarily due to an increase related to the realizability of losses in certain foreign and state jurisdictions of $8,339 and a decrease relating to the APAC JV ownership changes of $10,134. 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, |
|  |  | 2016 |  |  |  | 2015 |
Beginning balance |  | $ | 39,011 |  |  | $ | 31,877 |
Additions for tax positions related to current year |  |  | 9,714 |  |  |  | 6,131 |
Additions for tax positions related to prior years |  |  | — |  |  |  | 2,999 |
Reductions related to lapse of applicable statute |  |  | (1,277 | ) |  |  | (1,996 | )
Reductions related to settlements with taxing authorities |  |  | (23,382 | ) |  |  | — |
Ending balance |  | $ | 24,066 |  |  | $ | 39,011 |
As of December 31, 2016, the Company’s total liability for unrecognized tax benefits relating to tax positions that do not meet the more-likely-than-not threshold is $24,066, all of which would impact the Company’s effective tax rate if recognized. This balance represents a decrease of $14,945 from the December 31, 2015 balance of $39,011, primarily due to the positive settlement of an IRS and state audit. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in its income tax expense. At December 31, 2016 and 2015, the Company had approximately $2,595 and $9,918, respectively, accrued for interest and penalties related to unrecognized tax benefits, net of federal tax benefit. 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 2013 and 2008, 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 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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