XML 35 R18.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2015
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:
| 2015 |  | 2014 |  | 2013
Current: |  |  |  |  |
Federal | $ | 235.0 |  |  | $ | 220.9 |  |  | $ | 189.7 |
State | 34.1 |  |  | 32.2 |  |  | 28.9 |
Federal and state deferred | 10.3 |  |  | 9.5 |  |  | 13.4 |
Change in valuation allowance, net | 0.1 |  |  | — |  |  | (3.7 | )
Adjustments and settlements | (0.5 | ) |  | (0.1 | ) |  | 0.3 |
Income tax provision | $ | 279.0 |  |  | $ | 262.5 |  |  | $ | 228.6 |
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:
| 2015 |  | % |  | 2014 |  | % |  | 2013 |  | %
Income tax provision at statutory rate | $ | 253.0 |  |  | 35.0 |  |  | $ | 238.8 |  |  | 35.0 |  |  | $ | 211.6 |  |  | 35.0 |
Non-deductible expenses (income), net | 3.5 |  |  | 0.5 |  |  | 1.3 |  |  | 0.2 |  |  | (0.6 | ) |  | (0.1 | )
State income taxes, net of federal benefit | 23.6 |  |  | 3.3 |  |  | 23.2 |  |  | 3.4 |  |  | 21.7 |  |  | 3.6 |
| 280.1 |  |  | 38.8 |  |  | 263.3 |  |  | 38.6 |  |  | 232.7 |  |  | 38.5 |
Change in valuation allowance, net | 0.1 |  |  | — |  |  | — |  |  | — |  |  | (3.7 | ) |  | (0.6 | )
Adjustments and settlements | (0.5 | ) |  | (0.1 | ) |  | (0.1 | ) |  | — |  |  | 0.3 |  |  | — |
Other, net | (0.7 | ) |  | (0.1 | ) |  | (0.7 | ) |  | (0.1 | ) |  | (0.7 | ) |  | (0.1 | )
Income tax provision | $ | 279.0 |  |  | 38.6 |  |  | $ | 262.5 |  |  | 38.5 |  |  | $ | 228.6 |  |  | 37.8 |
Deferred income tax asset and liability components at December 31 are as follows:
| 2015 |  | 2014
Deferred income tax assets: |  |  |
Inventory | $ | 35.1 |  |  | $ | 28.9 |
Receivable reserves | 2.9 |  |  | 3.0 |
Warranty, chargeback, and self-insurance liabilities | 63.5 |  |  | 57.8 |
Other accrued liabilities | 32.6 |  |  | 25.1 |
Deferred compensation | 28.5 |  |  | 24.0 |
Stock-based compensation | 24.3 |  |  | 26.8 |
Loss carryforwards—federal and state | 13.3 |  |  | 7.2 |
Other, net | 6.8 |  |  | 13.2 |
Total deferred income tax assets | 207.0 |  |  | 186.0 |
Valuation allowance | (2.4 | ) |  | (2.5 | )
Deferred income tax assets, net of valuation allowance | 204.6 |  |  | 183.5 |
Deferred income tax liabilities: |  |  |
Long-lived assets (intangible assets and property) | (263.8 | ) |  | (233.6 | )
Other, net | (19.4 | ) |  | (19.2 | )
Total deferred income tax liabilities | (283.2 | ) |  | (252.8 | )
Net deferred income tax liabilities | $ | (78.6 | ) |  | $ | (69.3 | )
As discussed in Note 1 above, in November 2015, the FASB issued an accounting standard update that requires deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. As permitted, we adopted this accounting standard update prospectively effective October 1, 2015. Accordingly, our net deferred tax liability of $78.6 million is classified as Deferred Income Taxes in the accompanying Consolidated Balance Sheet as of December 31, 2015. We did not adjust prior periods retrospectively for the new accounting standard, and therefore, as of December 31, 2014, $68.6 million of current deferred income tax assets are classified as Other Current Assets and $137.9 million of noncurrent deferred income tax liabilities are classified as Deferred Income Taxes in the accompanying Consolidated Balance Sheet. Income taxes refundable included in Receivables, net totaled $11.7 million at December 31, 2015. Income taxes payable included in Other Current Liabilities totaled $17.5 million at December 31, 2014. At December 31, 2015, we had $110.3 million of gross domestic state net operating loss carryforwards and capital loss carryforwards, and $4.2 million of state tax credits, all of which result in a deferred tax asset of $7.3 million and expire from 2016 through 2033. At December 31, 2015, we had $2.4 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. 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 2014 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:
| 2015 |  | 2014 |  | 2013
Balance at January 1 | $ | 4.9 |  |  | $ | 4.8 |  |  | $ | 6.8 |
Additions based on tax positions related to the current year | — |  |  | — |  |  | — |
Additions for tax positions of prior years | 0.7 |  |  | 0.9 |  |  | 0.8 |
Reductions for tax positions of prior years | — |  |  | (0.1 | ) |  | (0.2 | )
Reductions for expirations of statute of limitations | — |  |  | (0.4 | ) |  | (2.2 | )
Settlements | — |  |  | (0.3 | ) |  | (0.4 | )
Balance at December 31 | $ | 5.6 |  |  | $ | 4.9 |  |  | $ | 4.8 |
We had accumulated interest and penalties associated with these unrecognized tax benefits of $5.5 million at December 31, 2015, $5.3 million at December 31, 2014, and $5.1 million at December 31, 2013. We additionally had a deferred tax asset of $4.0 million at December 31, 2015, $3.6 million at December 31, 2014, and $3.6 million at December 31, 2013, related to these balances. The net of the unrecognized tax benefits, associated interest, penalties, and deferred tax asset was $7.1 million at December 31, 2015, $6.6 million at December 31, 2014, and $6.3 million at December 31, 2013, 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 Liabilities and Deferred Income Taxes in the Consolidated Balance Sheets. It is our 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 2015, $0.3 million during 2014, and $0.4 million during 2013 (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, 2016.

X
- References No definition available. + 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 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=6907707&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=6907707&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=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 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration