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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Tax Disclosure | Income Taxes Federated files a consolidated federal income tax return. Financial statement tax expense is determined under the liability method. Income tax provision consisted of the following expense/(benefit) components for the years ended December 31:
in thousands |  | 2016 |  |  | 2015 |  |  | 2014 |
Current: |  |  |  |  |  |
Federal |  | $ | 93,538 |  |  | $ | 76,902 |  |  | $ | 63,266 |
State |  | 8,121 |  |  | 6,567 |  |  | 4,574 |
Foreign |  | 265 |  |  | 188 |  |  | 76 |
Total Current |  | 101,924 |  |  | 83,657 |  |  | 67,916 |
Deferred: |  |  |  |  |  |
Federal |  | 17,057 |  |  | 17,317 |  |  | 20,497 |
State |  | 597 |  |  | 1,753 |  |  | 916 |
Foreign |  | (158 | ) |  | 193 |  |  | 201 |
Total Deferred |  | 17,496 |  |  | 19,263 |  |  | 21,614 |
Total |  | $ | 119,420 |  |  | $ | 102,920 |  |  | $ | 89,530 |
The reconciliation between the statutory income tax rate and the effective tax rate consisted of the following for the years ended December 31:
|  | 2016 |  |  | 2015 |  |  | 2014 |
Expected federal statutory income tax rate |  | 35.0 | % |  | 35.0 | % |  | 35.0 | %
Increase/(decrease): |  |  |  |  |  |
State and local income taxes, net of federal benefit |  | 1.7 |  |  | 1.8 |  |  | 1.1 |
Other |  | (0.4 | ) |  | 0.9 |  |  | 1.3 |
Effective tax rate (excluding noncontrolling interests) |  | 36.3 |  |  | 37.7 |  |  | 37.4 |
Income attributable to noncontrolling interests |  | (1.3 | ) |  | (0.3 | ) |  | 0.0 |
Effective tax rate per Consolidated Statements of Income |  | 35.0 | % |  | 37.4 | % |  | 37.4 | %
See Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations under the caption Results of Operations - Income Taxes for information about the decrease in the effective tax rate for 2016 as compared to 2015. The tax effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities consisted of the following at December 31:
in thousands |  | 2016 |  |  | 2015 |
Deferred Tax Assets |  |  |  |  |  |
Tax net operating loss carryforwards |  | $ | 20,839 |  |  | $ | 18,109 |
Compensation related |  | 11,692 |  |  | 13,130 |
Other |  | 2,810 |  |  | 6,920 |
Total deferred tax assets |  | 35,341 |  |  | 38,159 |
Valuation allowance |  | (20,419 | ) |  | (17,791 | )
Total deferred tax asset, net of valuation allowance |  | $ | 14,922 |  |  | $ | 20,368 |
Deferred Tax Liabilities |  |  |  |
Intangible assets |  | $ | 168,748 |  |  | $ | 155,212 |
Property and equipment |  | 8,975 |  |  | 7,882 |
Deferred sales commissions |  | 4,439 |  |  | 5,270 |
State taxes |  | 8,723 |  |  | 8,248 |
Other |  | 515 |  |  | 714 |
Total gross deferred tax liability |  | $ | 191,400 |  |  | $ | 177,326 |
Net deferred tax liability |  | $ | 176,478 |  |  | $ | 156,958 |
At December 31, 2016, Federated had deferred tax assets related to state and foreign tax net operating loss carryforwards in certain taxing jurisdictions in the aggregate of $20.8 million, of which the state net operating losses will expire through 2036. The foreign net operating losses have no expiration period. A valuation allowance has been recognized for $18.4 million (or 100%) of the deferred tax asset for state tax net operating losses, and for $2.0 million (or 85%) of the deferred tax asset for foreign tax net operating losses. The valuation allowances were recorded due to management's belief that it is more likely than not that Federated will not realize the full benefit of these net operating losses. Federated's remaining deferred tax assets as of December 31, 2016 primarily related to compensation-related expenses that have been recognized for book purposes but are not yet deductible for tax purposes. Management believes that it is more likely than not that Federated will receive the full benefit of these deferred tax assets due to the expectation that Federated will generate taxable income well in excess of these amounts in the years they become deductible. At December 31, 2015, Federated had deferred tax assets related to state and foreign tax net operating loss carryforwards in certain taxing jurisdictions in the aggregate of $18.1 million, of which the state net operating losses will expire through 2035. The foreign net operating losses have no expiration period. A valuation allowance has been recognized for $15.6 million (or 99%) of the deferred tax asset for state tax net operating losses, and for $2.2 million (or 92%) of the deferred tax asset for foreign tax net operating losses. The valuation allowances were recorded due to management's belief that it is more likely than not that Federated will not realize the full benefit of these net operating losses. Federated and its subsidiaries file annual income tax returns in the U.S. federal jurisdiction, various U.S. state and local jurisdictions, and in certain foreign jurisdictions. Based upon its review of these filings, there were no material unrecognized tax benefits as of December 31, 2016 or 2015. Therefore, there were no material changes during 2016, and no reasonable possibility of a significant increase or decrease in unrecognized tax benefits within the next twelve months.

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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 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=65882285&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=65882285&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=65882285&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=65882285&loc=d3e32537-109319 + Details
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