XML 58 R17.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2013
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES Components of the provision for income taxes and the income to which it relates for the years ended December 31, 2013, 2012 and 2011 consist of the following (in thousands):
| Year Ended December 31,
| 2013 |  | 2012 |  | 2011
Income from continuing operations before income taxes: |  |  |  |  |
Domestic | $ | 43,936 |  |  | $ | 48,419 |  |  | $ | 44,199 |
Foreign | 76,256 |  |  | 73,818 |  |  | 62,888 |
Income from continuing operations before income taxes | $ | 120,192 |  |  | $ | 122,237 |  |  | $ | 107,087 |
Current income taxes: |  |  |  |  |
Federal | $ | 22,468 |  |  | $ | 17,423 |  |  | $ | 16,490 |
Foreign | 20,392 |  |  | 19,748 |  |  | 17,304 |
State and local | 781 |  |  | 962 |  |  | 749 |
Current provision for income taxes | 43,641 |  |  | 38,133 |  |  | 34,543 |
Deferred provision (benefit) for income taxes: |  |  |  |  |
Federal | (799 | ) |  | 3,122 |  |  | 2,540 |
Foreign | (7,218 | ) |  | — |  |  | — |
State and local | 89 |  |  | 120 |  |  | (133 | )
Total deferred provision (benefit) for income taxes | (7,928 | ) |  | 3,242 |  |  | 2,407 |
Provision for income taxes | $ | 35,713 |  |  | $ | 41,375 |  |  | $ | 36,950 |
The provision for income taxes related to discontinued operations was a $341,000 benefit, $271,000 benefit and $5,000,000 expense for the years ended December 31, 2013, 2012 and 2011, respectively. In July 2013, the Company terminated an election to include foreign subsidiaries in its consolidated U.S. federal income tax return and it is the Company's intent to indefinitely reinvest the earnings of these subsidiaries outside the U.S. Accordingly, under current U.S. income tax law, the undistributed earnings of the foreign subsidiaries should not be subject to U.S. federal income tax as of July 2013. The Company recognized an estimated one-time net income tax benefit of approximately $3,979,000 in 2013 related primarily to changes in deferred tax assets and liabilities, net of certain one-time U.S. tax liabilities associated with the termination of the election. The amount of the benefit could be subject to adjustment pending the preparation and filing of the Company's 2013 tax returns during 2014. The cumulative amount of indefinitely reinvested earnings of foreign subsidiaries is $23,485,000 at December 31, 2013. These earnings would be subject to additional U.S. taxes of $1,076,000 if the earnings were repatriated into the U.S. for 2013. The principal current and non-current deferred tax assets and liabilities consist of the following at December 31, 2013, and 2012 (in thousands):
| December 31,
| 2013 |  | 2012
Deferred tax assets: |  |  |
Depreciation | $ | 5,841 |  |  | $ | — |
Cumulative foreign translation adjustment | 4,010 |  |  | 3,447 |
Deferred cost of goods sold deduction | 2,507 |  |  | — |
Interest accrual on forfeited pawn loans | 1,053 |  |  | 1,365 |
Deferred compensation | 773 |  |  | — |
Allowance for consumer loan losses | 427 |  |  | — |
Other | 1,091 |  |  | 495 |
Total deferred tax assets | 15,702 |  |  | 5,307 |
Deferred tax liabilities: |  |  |
Intangible asset amortization | 17,760 |  |  | 15,823 |
Share-based compensation | 918 |  |  | 1,101 |
Other | 807 |  |  | 510 |
Total deferred tax liabilities | 19,485 |  |  | 17,434 |
Net deferred tax liabilities | $ | (3,783 | ) |  | $ | (12,127 | )
Reported as: |  |  |
Current deferred tax assets | $ | 5,044 |  |  | $ | 1,148 |
Non-current deferred income tax liabilities | (8,827 | ) |  | (13,275 | )
Net deferred tax liabilities | $ | (3,783 | ) |  | $ | (12,127 | )
The effective rate on income from continuing operations differs from the U.S. federal statutory rate of 35%. The following is a reconciliation of such differences (in thousands):
| Year Ended December 31,
| 2013 |  | 2012 |  | 2011
Tax at the U.S. federal statutory rate | $ | 42,067 |  |  | $ | 42,783 |  |  | $ | 37,480 |
State income taxes, net of federal tax benefit of $273, $337 and $262, respectively | 508 |  |  | 625 |  |  | 487 |
Effect of indefinitely reinvesting foreign earnings | (2,281 | ) |  | — |  |  | — |
Tax restructuring | (3,979 | ) |  | — |  |  | — |
Additional foreign tax credit claimed from prior periods | — |  |  | (778 | ) |  | — |
Other taxes and adjustments, net | (602 | ) |  | (1,255 | ) |  | (1,017 | )
Provision for income taxes | $ | 35,713 |  |  | $ | 41,375 |  |  | $ | 36,950 |
Effective tax rate | 29.7 | % |  | 33.8 | % |  | 34.5 | %
The Company reviews the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. Interest and penalties related to income tax liabilities that could arise would be classified as interest expense in the Company's consolidated statements of income. There were no such interest or penalties for the fiscal years ended December 31, 2013, 2012 and 2011. As of December 31, 2013, and 2012, the Company had no unrecognized tax benefits and, therefore, the Company did not have a liability for accrued interest and penalties. The Company does not believe its unrecognized tax benefits will significantly change over the next twelve months. The Company files federal income tax returns in the United States and Mexico, as well as multiple state and local income tax returns in the United States. During fiscal 2013, the U.S. Internal Revenue Service completed its examination of the Company's U.S. federal income tax returns for the years ended December 31, 2006, 2007, and 2008, which resulted in no adjustments. The Company's U.S. federal returns are not subject to examination for tax years prior to 2010. The Company's state income tax returns are not subject to examination for the tax years prior to 2010 with the exception of three states, which are not subject to examination for tax years prior to 2009. With respect to Mexico, the tax years prior to 2008 are closed to examination.

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=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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration