XML 104 R21.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2012
Income Taxes |
Income Taxes | 14. Income Taxes The consolidated income tax provision includes taxes attributable to the controlling interest and, to a lesser extent, taxes attributable to non-controlling interests as follows:
|  | For the Years Ended December 31, |
--- | --- | --- | ---
|  | 2010 |  | 2011 |  | 2012 |
Controlling Interests: |  |  |  |  |  |  |  |  |  |
Current tax |  | $ | 42.1 |  | $ | 45.0 |  | $ | 61.0 |
Intangible related deferred taxes |  |  | 47.5 |  |  | 43.2 |  |  | 22.7 |
Other deferred taxes |  |  | (9.3 | ) |  | (4.0 | ) |  | (12.1 | )
Total controlling interests |  |  | 80.3 |  |  | 84.2 |  |  | 71.6 |
Non-controlling Interests: |  |  |  |  |  |  |  |  |  |
Current tax |  | $ | 14.0 |  | $ | 12.9 |  | $ | 11.7 |
Deferred taxes |  |  | (2.8 | ) |  | (4.0 | ) |  | 0.5 |
Total non-controlling interests |  |  | 11.2 |  |  | 8.9 |  |  | 12.2 |
Provision for income taxes |  | $ | 91.5 |  | $ | 93.1 |  | $ | 83.8 |
Income before income taxes (controlling interest) |  | $ | 218.9 |  | $ | 249.1 |  | $ | 245.6 |
Effective tax rate attributable to controlling interests(1) |  |  | 36.7 | % |  | 33.8 | % |  | 29.2 | %
(1) Taxes attributable to the controlling interest divided by Income before income taxes (controlling interest). A summary of the consolidated provision for income taxes is as follows:
|  | For the Years Ended December 31, |
--- | --- | --- | ---
|  | 2010 |  | 2011 |  | 2012 |
Current: |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 12.8 |  | $ | 7.7 |  | $ | 19.4 |
State |  |  | 9.9 |  |  | 9.7 |  |  | 11.3 |
Foreign |  |  | 33.4 |  |  | 40.5 |  |  | 42.0 |
Total current |  |  | 56.1 |  |  | 57.9 |  |  | 72.7 |
Deferred: |  |  |  |  |  |  |  |  |  |
Federal |  |  | 43.2 |  |  | 47.4 |  |  | 19.4 |
State |  |  | 2.7 |  |  | 4.4 |  |  | 3.0 |
Foreign |  |  | (10.5 | ) |  | (16.6 | ) |  | (11.3 | )
Total deferred |  |  | 35.4 |  |  | 35.2 |  |  | 11.1 |
Provision for income taxes |  | $ | 91.5 |  | $ | 93.1 |  | $ | 83.8 |
The components of income before income taxes consisted of the following:
|  | For the Years Ended December 31, |
--- | --- | --- | ---
|  | 2010 |  | 2011 |  | 2012 |
Domestic |  | $ | 186.3 |  | $ | 243.8 |  | $ | 238.6 |
International |  |  | 192.6 |  |  | 208.9 |  |  | 256.6 |
|  | $ | 378.9 |  | $ | 452.7 |  | $ | 495.2 |
The Company's effective income tax rate differs from the amount computed by using income before income taxes and applying the U.S. federal income tax rate to such amount because of the effect of the following items:
|  | For the Years Ended December 31, |
--- | --- | --- | ---
|  | 2010 |  | 2011 |  | 2012 |
Tax at U.S. federal income tax rate |  |  | 35.0 | % |  | 35.0 | % |  | 35.0 | %
State income taxes, net of federal benefit |  |  | 2.0 |  |  | 2.4 |  |  | 4.6 |
Non-deductible expenses |  |  | 0.1 |  |  | 0.5 |  |  | 0.8 |
Valuation allowance |  |  | 1.0 |  |  | (1.1 | ) |  | (5.9 | )
Effect of foreign operations |  |  | 0.5 |  |  | — |  |  | (2.9 | )
Foreign basis differences |  |  | (0.7 | ) |  | (0.9 | ) |  | (0.4 | )
Effect of changes in tax law, rates |  |  | (1.2 | ) |  | (2.1 | ) |  | (2.0 | )
Effect of income from non-controlling interests |  |  | (12.5 | ) |  | (13.2 | ) |  | (12.2 | )
|  |  | 24.2 | % |  | 20.6 | % |  | 17.0 | %
During 2010, the Company increased its deferred tax valuation allowance $2.2 million, principally for exposure to foreign tax credit carryforwards increasing its effective tax rate 1.0%. In both 2011 and 2012, the Company reversed $2.8 million of its valuation allowance, principally for state net operating losses that expired. In 2012, the Company also reduced the allowance $11.5 million for foreign tax credit carryforwards and benefits of uncertain tax positions from improved projections of taxes in the U.S. During 2010, 2011 and 2012, the Company realized a deferred tax benefit of $4.1 million, $7.6 million, and $7.3 million, respectively, from the re-valuation of its deferred taxes from a change in enacted tax rates in the United Kingdom. These changes, which reduced taxes attributable to both the controlling and non-controlling interest, decreased the Company's effective tax rate 1.9%, 3.1% and 3.0% in 2010, 2011 and 2012, respectively. Excluding the non-controlling interest tax benefits, the changes decreased the effective tax rate of the controlling interest 1.2%, 2.1% and 2.0% in 2010, 2011 and 2012, respectively. The Company does not provide for deferred taxes on the excess of the financial reporting basis over the tax basis in its investments in foreign subsidiaries that are permanent in duration. This amount becomes taxable upon a repatriation of assets from a sale or liquidation of the subsidiary. As of December 31, 2012, the amount of such temporary difference was approximately $25.8 million. The deferred taxes not recognized at December 31, 2012 for this temporary difference are approximately $9.8 million. The components of deferred tax assets and liabilities are as follows:
|  | December 31, |
--- | --- | --- | ---
|  | 2011 |  | 2012 |
Deferred Tax Assets |  |  |  |  |  |  |
State net operating loss carryforwards |  | $ | 26.5 |  | $ | 23.9 |
Deferred compensation |  |  | 17.5 |  |  | 23.9 |
Foreign tax credit carryforwards |  |  | 15.1 |  |  | 20.1 |
Tax benefit of uncertain tax positions |  |  | 11.6 |  |  | 17.6 |
Accrued expenses |  |  | 11.6 |  |  | 6.0 |
Capital loss carryforwards |  |  | 1.5 |  |  | 1.5 |
Total deferred tax assets |  |  | 83.8 |  |  | 93.0 |
Valuation allowance |  |  | (35.6 | ) |  | (21.3 | )
Deferred tax assets, net of valuation allowance |  | $ | 48.2 |  | $ | 71.7 |
Deferred Tax Liabilities |  |  |  |  |  |  |
Intangible asset amortization |  | $ | (247.1 | ) | $ | (238.2 | )
Convertible securities interest |  |  | (171.1 | ) |  | (189.2 | )
Non-deductible intangible amortization |  |  | (127.2 | ) |  | (120.1 | )
Deferred revenue |  |  | (5.6 | ) |  | (18.5 | )
Other |  |  | (3.2 | ) |  | (2.8 | )
Total deferred tax liabilities |  |  | (554.2 | ) |  | (568.8 | )
Net deferred tax liability |  | $ | (506.0 | ) | $ | (497.1 | )
Deferred tax liabilities are primarily the result of tax deductions for the Company's intangible assets and convertible securities. The Company amortizes most of its intangible assets for tax purposes only, reducing its tax basis below its carrying value for financial statement purposes and generating deferred taxes each reporting period. The Company's 2008 senior convertible notes and junior convertible trust preferred securities also generate deferred taxes because the Company's tax deductions are higher than the interest expense recorded for financial statement purposes. At December 31, 2012, the Company has state net operating loss carryforwards that expire over a 15-year period beginning in 2013. The Company also has foreign tax credit carryforwards that expire over a 10-year period beginning in 2013. The valuation allowances at December 31, 2011 and December 31, 2012 were principally related to the Company's projections of taxable income prior to the expiration of these state and federal carryforwards. The Company carried a liability for uncertain tax positions of $24.6 million, $21.3 million and $22.6 million as of December 31, 2010, 2011 and 2012, respectively. These amounts included $3.2 million, $1.6 million and $2.2 million of interest and related charges, respectively. At December 31, 2010, 2011 and 2012, these liabilities also included $16.7 million, $12.6 million and $19.4 million, respectively, for tax positions that, if recognized, would affect the Company's effective tax rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|  | For the Years Ended December 31, |
--- | --- | --- | ---
|  | 2010 |  | 2011 |  | 2012 |
Balance, as of January 1 |  | $ | 21.9 |  | $ | 24.6 |  | $ | 21.2 |
Additions based on current year tax positions |  |  | 7.0 |  |  | 4.8 |  |  | 5.9 |
Additions based on prior years' tax positions |  |  | — |  |  | — |  |  | 5.2 |
Reductions for prior years' tax provisions |  |  | (1.2 | ) |  | — |  |  | (5.4 | )
Settlements |  |  | — |  |  | (1.2 | ) |  | — |
Reductions related to lapses of statutes of limitations |  |  | (3.4 | ) |  | (6.7 | ) |  | (4.6 | )
Additions (reductions) related to foreign exchange rates |  |  | 0.3 |  |  | (0.3 | ) |  | 0.3 |
Balance, as of December 31 |  | $ | 24.6 |  | $ | 21.2 |  | $ | 22.6 |
During 2012, this liability decreased $5.4 million as a result of the recognition of tax benefits from the transfer of interests in an Affiliate. This decrease was offset by a $5.2 million provision for added foreign exposure for prior years. The Company does not anticipate that this liability will change significantly over the next twelve months. The Company periodically has tax examinations in the U.S. and foreign jurisdictions. Examination outcomes, and any related settlements, are subject to significant uncertainty. The completion of examinations may result in the payment of additional taxes and/or the recognition of tax benefits. The Company is generally no longer subject to income tax examinations by any tax authorities for years before 2007.

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 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 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 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 5: 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. Reference 6: 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 7: 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 8: 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