XML 58 R11.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2014
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES The Company follows the provisions of the Financial Accounting Standards Codification 740 (“ASC 740”), “Income Taxes.” A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| 2014 |  | 2013 |  | 2012
Beginning of year | $ | 7,351,000 |  |  | $ | 4,168,000 |  |  | $ | 2,476,000 |
Additions based on tax positions related to the current year | 1,328,000 |  |  | 1,595,000 |  |  | 785,000 |
Additions for tax positions in prior years | 634,000 |  |  | 1,633,000 |  |  | 907,000 |
Reductions for tax positions in prior years | (676,000 | ) |  | (45,000 | ) |  | — |
Reductions as a result of a lapse of the applicable statute of limitations | (349,000 | ) |  | — |  |  | — |
End of year | $ | 8,288,000 |  |  | $ | 7,351,000 |  |  | $ | 4,168,000 |
If recognized, unrecognized tax benefits would affect the effective tax rate. The Company recognizes interest and penalties related to unrecognized tax benefits through the provision for income taxes. The Company has accrued approximately $821,000 and $555,000 for interest as of December 31, 2014 and 2013, respectively. Interest recorded during 2014, 2013 and 2012 was not considered significant. The Company is also subject to periodic and routine audits in both domestic and foreign tax jurisdictions, and it is reasonably possible that the amounts of unrecognized tax benefits could change as a result of an audit. Based on the current audits in process, the payment of taxes as a result of audit settlements and the completion of tax examinations the Company does not expect these to have a material impact on the Company’s financial position or results of operations. For the majority of tax jurisdictions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2010. In December 2014, the 2014 Tax Increase Prevention Act (TIPA) was signed into law and reinstated retroactively to January 1, 2014 various tax provisions known as tax "extenders" that had expired as of December 31, 2013. In accordance with ASC 740-45-15, the effects of changes in tax rates and laws on deferred tax balances and tax rates are recognized in the period the new legislation is enacted. As a result, the impact of the new legislation is reflected in the Company's consolidated financial position and results of operations in the fourth quarter of 2014. The provision for income taxes is based on the earnings reported in the accompanying consolidated financial statements. The Company recognizes deferred income tax liabilities and assets for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns. Under this method, deferred income tax liabilities and assets are determined based on the cumulative temporary differences between the financial statement and tax bases of assets and liabilities using enacted tax rates. Deferred income tax expense is measured by the net change in deferred income tax assets and liabilities during the year. The foreign components of income before the provision for income taxes were not material as of December 31, 2014, 2013 and 2012. The components of the provision for income taxes are as follows:
| 2014 |  | 2013 |  | 2012
Currently payable: |  |  |  |  |
Federal | $ | 108,689,911 |  |  | $ | 95,285,094 |  |  | $ | 76,507,760 |
State | 2,236,000 |  |  | 3,259,000 |  |  | 2,450,000 |
Foreign | 978,000 |  |  | 1,353,000 |  |  | 1,238,000 |
Total | 111,903,911 |  |  | 99,897,094 |  |  | 80,195,760 |
Net deferred: |  |  |  |  |
Primarily federal | 14,818,000 |  |  | 5,237,000 |  |  | 843,000 |
Provision for income taxes | $ | 126,721,911 |  |  | $ | 105,134,094 |  |  | $ | 81,038,760 |
The currently payable provision is further reduced by the tax benefits associated with the exercise, vesting or disposition of stock under the stock plans described in Note 5. These reductions totaled approximately $10.8 million, $7.4 million and $1.5 million in 2014, 2013 and 2012, respectively, and were recognized as an adjustment of additional paid-in capital. The effective income tax rates are different from the statutory federal income tax rates for the following reasons:
| 2014 |  | 2013 |  | 2012
Statutory federal income tax rate | 35.00 | % |  | 35.0 | % |  | 35.0 | %
State income taxes, net of federal income tax benefit | 0.30 |  |  | 0.6 |  |  | 0.6 |
Domestic production exclusion | (2.60 | ) |  | (3.1 | ) |  | (2.9 | )
Research tax credit (1) | (2.00 | ) |  | (0.4 | ) |  | — |
Other | (0.20 | ) |  | (0.1 | ) |  | (0.2 | )
Effective income tax rate | 30.50 | % |  | 32.0 | % |  | 32.5 | %
1) - Research tax credits applied in 2014 related to prior tax year amended tax filings were approximately 1.3 percentage points of the 2 percentage point reduction in the effective income tax rate. The tax effect of temporary differences which give rise to deferred income tax assets and liabilities at December 31, 2014 and 2013, are as follows:
| 2014 |  | 2013
| Current |  | Non-Current |  | Current |  | Non-Current
Assets: |  |  |  |  |  |  |
Accruals not currently deductible | $ | 2,605,711 |  |  | $ | 224,803 |  |  | $ | 2,970,671 |  |  | $ | 182,803 |
Stock based compensation | 13,508,845 |  |  | 2,508,304 |  |  | 13,290,429 |  |  | 2,202,940 |
Impairment loss on available-for-sale securities | — |  |  | 135,724 |  |  | — |  |  | 175,091 |
Intangible Assets | — |  |  | — |  |  | — |  |  | 169,913 |
Other | 4,440,407 |  |  | 19,765 |  |  | 4,713,241 |  |  | 40,203 |
Total deferred income tax assets | 20,554,963 |  |  | 2,888,596 |  |  | 20,974,341 |  |  | 2,770,950 |
Liabilities: |  |  |  |  |  |  |
Excess tax over book depreciation | — |  |  | (46,017,949 | ) |  | — |  |  | (41,374,851 | )
Goodwill | — |  |  | (8,868,168 | ) |  | — |  |  | (1,792,968 | )
Unrealized gain on investments | — |  |  | (6,368,670 | ) |  | — |  |  | (10,482,468 | )
Intangible assets | — |  |  | (1,205,230 | ) |  | — |  |  | — |
Other | (1,117,956 | ) |  |  |  | (558,249 | ) |  |  |
Net deferred income taxes | $ | 19,437,007 |  |  | $ | (59,571,421 | ) |  | $ | 20,416,092 |  |  | $ | (50,879,337 | )
Income taxes paid in cash were approximately $128.8 million, $97.1 million and $63.4 million in 2014, 2013 and 2012, respectively. No provision has been made for U.S. Federal and State income taxes on foreign taxes that may result from remittances of undistributed earnings of foreign subsidiaries as of December 31, 2014, 2013 and 2012. The Company expects such earnings will remain reinvested in those foreign subsidiaries indefinitely. Undistributed foreign earnings were not material as of December 31, 2014, 2013 and 2012.

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