XML 81 R18.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2013
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES The components of the income tax provision from continuing operations for the years ended December 31 are as follows:
| 2013 |  | 2012 |  | 2011
Current: |  |  |  |  |
Federal | $ | 189.7 |  |  | $ | 146.9 |  |  | $ | 125.3 |
State | 28.9 |  |  | 25.1 |  |  | 21.3 |
Federal and state deferred | 13.4 |  |  | 27.1 |  |  | 31.3 |
Change in valuation allowance, net | (3.7 | ) |  | 0.1 |  |  | (0.2 | )
Adjustments and settlements | 0.3 |  |  | 0.3 |  |  | (0.6 | )
Income tax provision | $ | 228.6 |  |  | $ | 199.5 |  |  | $ | 177.1 |
A reconciliation of the income tax provision calculated using the statutory federal income tax rate to our income tax provision from continuing operations for the years ended December 31 is as follows:
| 2013 |  | % |  | 2012 |  | % |  | 2011 |  | %
Income tax provision at statutory rate | $ | 211.6 |  |  | 35.0 |  |  | $ | 180.9 |  |  | 35.0 |  | $ | 161.4 |  |  | 35.0 |
Non-deductible expenses (income), net | (0.6 | ) |  | (0.1 | ) |  | (0.2 | ) |  | — |  | 1.1 |  |  | 0.2 |
State income taxes, net of federal benefit | 21.7 |  |  | 3.6 |  |  | 18.8 |  |  | 3.6 |  | 16.7 |  |  | 3.6 |
| 232.7 |  |  | 38.5 |  |  | 199.5 |  |  | 38.6 |  | 179.2 |  |  | 38.8 |
Change in valuation allowance, net | (3.7 | ) |  | (0.6 | ) |  | 0.1 |  |  | — |  | (0.2 | ) |  | — |
Adjustments and settlements | 0.3 |  |  | — |  |  | 0.3 |  |  | — |  | (0.6 | ) |  | (0.2 | )
Other, net | (0.7 | ) |  | (0.1 | ) |  | (0.4 | ) |  | — |  | (1.3 | ) |  | (0.2 | )
Income tax provision | $ | 228.6 |  |  | 37.8 |  |  | $ | 199.5 |  |  | 38.6 |  | $ | 177.1 |  |  | 38.4 |
Deferred income tax asset and liability components at December 31 are as follows:
| 2013 |  | 2012
Deferred income tax assets: |  |  |
Inventory | $ | 24.6 |  |  | $ | 20.3 |
Receivable reserves | 3.0 |  |  | 4.0 |
Warranty, chargeback, and self-insurance liabilities | 49.2 |  |  | 42.8 |
Other accrued liabilities | 21.6 |  |  | 18.7 |
Deferred compensation | 19.7 |  |  | 12.9 |
Stock-based compensation | 24.1 |  |  | 20.6 |
Loss carryforwards—federal and state | 10.5 |  |  | 13.8 |
Other, net | 12.7 |  |  | 15.4 |
Total deferred income tax assets | 165.4 |  |  | 148.5 |
Valuation allowance | (2.7 | ) |  | (6.5 | )
Deferred income tax assets, net of valuation allowance | 162.7 |  |  | 142.0 |
Deferred income tax liabilities: |  |  |
Long-lived assets (intangible assets and property) | (200.2 | ) |  | (170.1 | )
Other, net | (21.3 | ) |  | (16.6 | )
Total deferred income tax liabilities | (221.5 | ) |  | (186.7 | )
Net deferred income tax assets (liabilities) | $ | (58.8 | ) |  | $ | (44.7 | )
We had $57.7 million of current deferred income tax assets and $116.5 million of non-current deferred income tax liabilities at December 31, 2013, and $44.7 million of current deferred income tax assets, and $89.4 million of non-current deferred income tax liabilities at December 31, 2012. Current deferred income tax assets are classified as Other Current Assets and non-current deferred income tax liabilities are classified as Deferred Income Taxes in the accompanying Consolidated Balance Sheets. Income taxes payable included in Other Current Liabilities totaled $8.4 million at December 31, 2013 and $3.2 million at December 31, 2012. At December 31, 2013, we had $173.5 million of gross domestic state net operating loss carryforwards and capital loss carryforwards, and $4.5 million of state tax credits, all of which result in a deferred tax asset of $10.5 million and expire from 2014 through 2034. At December 31, 2013, we had $2.7 million of valuation allowance related to these loss carryforwards. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. We provide valuation allowances to offset portions of deferred tax assets due to uncertainty surrounding the future realization of such deferred tax assets. We adjust the valuation allowance in the period management determines it is more likely than not that deferred tax assets will or will not be realized. Certain decreases to valuation allowances are offset against intangible assets associated with business acquisitions accounted for under the acquisition method of accounting. During 2013, we completed a restructuring of certain of our subsidiaries, a consequence of which was the release of a valuation allowance of $3.4 million, which was reflected as a benefit in our income tax provision for the three and twelve months ended December 31, 2013. We recognized net tax benefits related to the adjustment and resolution of certain income tax matters of $1.3 million in 2011. We file income tax returns in the U.S. federal jurisdiction and various states. As a matter of course, various taxing authorities, including the IRS, regularly audit us. These audits may result in proposed assessments where the ultimate resolution may result in our owing additional taxes. Currently, no tax years are under examination by the IRS and tax years from 2009 to 2010 are under examination by U.S. state jurisdictions. We believe that our tax positions comply with applicable tax law and that we have adequately provided for these matters. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| 2013 |  | 2012 |  | 2011
Balance at January 1 | $ | 6.8 |  |  | $ | 6.4 |  |  | $ | 6.9 |
Additions based on tax positions related to the current year | — |  |  | — |  |  | — |
Additions for tax positions of prior years | 0.8 |  |  | 0.5 |  |  | 0.9 |
Reductions for tax positions of prior years | (0.2 | ) |  | — |  |  | — |
Reductions for expirations of statute of limitations | (2.2 | ) |  | — |  |  | — |
Settlements | (0.4 | ) |  | (0.1 | ) |  | (1.4 | )
Balance at December 31 | $ | 4.8 |  |  | $ | 6.8 |  |  | $ | 6.4 |
We had accumulated interest and penalties associated with these unrecognized tax benefits of $5.1 million at December 31, 2013, $4.5 million at December 31, 2012, and $4.0 million at December 31, 2011. We additionally had a deferred tax asset of $3.6 million at December 31, 2013, $5.5 million at December 31, 2012, and $5.2 million at December 31, 2011, related to these balances. The net of the unrecognized tax benefits, associated interest, penalties, and deferred tax asset was $6.3 million at December 31, 2013, $5.8 million at December 31, 2012, and $5.2 million at December 31, 2011, which if resolved favorably (in whole or in part) would reduce our effective tax rate. The unrecognized tax benefits, associated interest, penalties, and deferred tax asset are included as components of Other Assets and Other Liabilities in the Consolidated Balance Sheets. It is our continuing policy to account for interest and penalties associated with income tax obligations as a component of income tax expense. We recognized $0.4 million during 2013, $0.3 million during 2012, and $0.3 million during 2011 (each net of tax effect), of interest and penalties as part of the provision for income taxes in the Consolidated Statements of Income. We do not expect that our unrecognized tax benefits will significantly increase or decrease during the twelve months beginning January 1, 2014. In September 2013, the IRS released final tangible property regulations under Sections 162(a) and 263(a) of the Internal Revenue Code regarding the deduction and capitalization of expenditures related to tangible property as well as dispositions of tangible property. These regulations will be effective for our tax year beginning January 1, 2014. We are currently assessing the impact of these regulations and do not anticipate they will have a material impact on our consolidated financial position, results of operations, or cash flows.

X
- Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
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 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=6881521&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 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration