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Income Taxes | 12 Months Ended
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Dec. 31, 2014
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, 2014, 2013 and 2012 consist of the following (in thousands):
| Year Ended December 31,
| 2014 |  | 2013 |  | 2012
Income from continuing operations before income taxes (1): |  |  |  |  |
Domestic | $ | 50,984 |  |  | $ | 43,936 |  |  | $ | 48,419 |
Foreign | 65,996 |  |  | 76,256 |  |  | 73,818 |
Income from continuing operations before income taxes | $ | 116,980 |  |  | $ | 120,192 |  |  | $ | 122,237 |
Current income taxes: |  |  |  |  |
Federal | $ | 11,494 |  |  | $ | 22,468 |  |  | $ | 17,423 |
Foreign | 17,823 |  |  | 20,392 |  |  | 19,748 |
State and local | 1,097 |  |  | 781 |  |  | 962 |
Current provision for income taxes | 30,414 |  |  | 43,641 |  |  | 38,133 |
Deferred provision (benefit) for income taxes: |  |  |  |  |
Federal | 2,232 |  |  | (799 | ) |  | 3,122 |
Foreign | (1,232 | ) |  | (7,218 | ) |  | — |
State and local | 128 |  |  | 89 |  |  | 120 |
Total deferred provision (benefit) for income taxes | 1,128 |  |  | (7,928 | ) |  | 3,242 |
Provision for income taxes | $ | 31,542 |  |  | $ | 35,713 |  |  | $ | 41,375 |
(1) | Includes the allocation of certain administrative expenses between domestic and foreign subsidiaries.
The provision for income taxes related to discontinued operations was a $147,000, $341,000 and $271,000 benefit for the years ended December 31, 2014, 2013 and 2012, respectively. In July 2013, the Company terminated an election to include foreign subsidiaries in its consolidated U.S. federal income tax return (the “Tax Restructuring”) and it is the Company’s intent to indefinitely reinvest the earnings of these subsidiaries outside the U.S. Accordingly, under U.S. income tax law, as of December 31, 2014, the undistributed earnings of the foreign subsidiaries are not subject to current U.S. federal income taxes. The cumulative amount of indefinitely reinvested earnings of foreign subsidiaries is $67,294,000 at December 31, 2014. These earnings would be subject to additional U.S. taxes of $5,894,000 if the earnings were repatriated into the U.S. for 2014. As a result of the Tax Restructuring, the Company recognized an estimated non-recurring net income tax benefit of approximately $3,979,000 during fiscal 2013 consisting of a $3,436,000 income tax benefit from the elimination of certain U.S. deferred tax liabilities associated with foreign operations and an estimated $5,398,000 income tax benefit arising from the recognition of certain foreign deferred tax assets, partially offset by an estimated $4,855,000 in additional U.S. income tax expense. In 2014, the Company prepared and filed federal income tax returns in both the U.S. and Mexico for the fiscal 2013 tax year which reflected the effects of the Tax Restructuring, including changes in certain previously estimated current and deferred tax amounts. As a result, the Company recorded fiscal 2014 non-recurring income tax benefits of $3,742,000 from the change in estimated U.S. income tax liabilities related to the Tax Restructuring and $2,099,000 from the recognition of additional estimated foreign deferred tax assets as a result of the Tax Restructuring. The principal current and non-current deferred tax assets and liabilities consist of the following at December 31, 2014 and 2013 (in thousands):
| December 31,
| 2014 |  | 2013
Deferred tax assets: |  |  |
Cumulative foreign translation adjustment | $ | 14,111 |  |  | $ | 4,010 |
Depreciation | 6,010 |  |  | 5,841 |
Accrued fees on forfeited pawn loans | 3,864 |  |  | 1,216 |
Deferred cost of goods sold deduction | 2,391 |  |  | 2,507 |
Accrued compensation | 778 |  |  | 773 |
Other | 1,710 |  |  | 1,355 |
Total deferred tax assets | 28,864 |  |  | 15,702 |
Deferred tax liabilities: |  |  |
Intangible asset amortization | 21,444 |  |  | 17,760 |
Share-based compensation | 222 |  |  | 918 |
Other | 1,241 |  |  | 807 |
Total deferred tax liabilities | 22,907 |  |  | 19,485 |
Net deferred tax assets (liabilities) | $ | 5,957 |  |  | $ | (3,783 | )
Reported as: |  |  |
Current deferred tax assets | $ | 7,122 |  |  | $ | 5,044 |
Non-current deferred income tax liabilities | (1,165 | ) |  | (8,827 | )
Net deferred tax assets (liabilities) | $ | 5,957 |  |  | $ | (3,783 | )
The Company has evaluated the nature and timing of its deferred tax assets and concluded that no valuation allowance is necessary. 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,
| 2014 |  | 2013 |  | 2012
Tax at the U.S. federal statutory rate | $ | 40,943 |  |  | $ | 42,067 |  |  | $ | 42,783 |
State income taxes, net of federal tax benefit of $429, $273 and $337, respectively | 796 |  |  | 508 |  |  | 625 |
Rate benefit from foreign earnings | (4,576 | ) |  | (2,281 | ) |  | — |
Net non-recurring benefit of Tax Restructuring | (5,841 | ) |  | (3,979 | ) |  | — |
Additional foreign tax credit claimed from prior periods | — |  |  | — |  |  | (778 | )
Other taxes and adjustments, net | 220 |  |  | (602 | ) |  | (1,255 | )
Provision for income taxes | $ | 31,542 |  |  | $ | 35,713 |  |  | $ | 41,375 |
Effective tax rate | 27.0 | % |  | 29.7 | % |  | 33.8 | %
Prior to the Tax Restructuring in July 2013, the Company’s foreign operations were included in its consolidated U.S. federal income tax return and effectively taxed at the U.S. federal statutory rate of 35%. Following the Tax Restructuring, the Company’s foreign operations are subject to the lower Mexico federal statutory rate of 30%. Excluding the net non-recurring benefits related to the Tax Restructuring, the consolidated tax rate was 32.0% and 33.0% for fiscal 2014 and 2013, respectively, reflecting the blended statutory federal tax rates of 35% in the U.S. and 30% in Mexico, which became effective in July 2013. 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, 2014, 2013 and 2012. As of December 31, 2014 and 2013, 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. The Company’s U.S. federal returns are not subject to examination for tax years prior to 2011. The Company’s U.S. state income tax returns are not subject to examination for the tax years prior to 2011 with the exception of three states, which are not subject to examination for tax years prior to 2010. With respect to federal tax returns in Mexico, the tax years prior to 2009 are closed to examination. There are no state income taxes in Mexico.

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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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