XML 68 R29.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2013
Income Taxes |
20. | INCOME TAXES
Income before income taxes consisted of the following:
|  | Year Ended December 31, |
|  | 2011 |  |  | 2012 |  |  | 2013 |
Income before income taxes: |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 114,692 |  |  | $ | 183,207 |  |  | $ | 162,687 |
Foreign |  |  | 90,940 |  |  |  | 113,611 |  |  |  | 101,177 |
Total |  | $ | 205,632 |  |  | $ | 296,818 |  |  | $ | 263,864 |
Current and deferred income taxes were as follows:
|  | Year Ended December 31, |
|  | 2011 |  |  | 2012 |  |  | 2013 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 17,070 |  |  | $ | 55,399 |  |  | $ | 97,467 |
Foreign |  |  | 26,830 |  |  |  | 53,964 |  |  |  | 42,690 |
State |  |  | 7,099 |  |  |  | 8,494 |  |  |  | 10,951 |
Total current expense |  |  | 50,999 |  |  |  | 117,857 |  |  |  | 151,108 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 22,100 |  |  |  | 12,096 |  |  |  | (30,833 | )
Foreign |  |  | (2,332 | ) |  |  | (6,007 | ) |  |  | 2,653 |
State |  |  | 2,283 |  |  |  | 1,452 |  |  |  | (9,612 | )
Total deferred taxes |  |  | 22,051 |  |  |  | 7,541 |  |  |  | (37,792 | )
Income taxes |  | $ | 73,050 |  |  | $ | 125,398 |  |  | $ | 113,316 |
A reconciliation between income tax expense and taxes computed by applying the applicable statutory federal income tax rate to income before income taxes follows:
|  | Year Ended December 31, |
|  | 2011 |  |  | 2012 |  |  | 2013 |
Computed normal tax expense |  | $ | 71,972 |  |  | $ | 103,886 |  |  | $ | 92,353 |
Foreign inflation adjustments |  |  | (1,587 | ) |  |  | (33 | ) |  |  | 67 |
State and local income taxes, net of federal income tax impact |  |  | 7,310 |  |  |  | 7,456 |  |  |  | 789 |
Foreign losses not benefited and other changes in valuation allowance |  |  | (676 | ) |  |  | (711 | ) |  |  | (2,052 | )
Foreign tax rate differential |  |  | (3,321 | ) |  |  | (1,545 | ) |  |  | (336 | )
Foreign dividends |  |  | 4,173 |  |  |  | 10,576 |  |  |  | 3,294 |
Sale of Mexican subsidiaries |  |  | — |  |  |  | — |  |  |  | 21,406 |
Changes in uncertain tax positions |  |  | 396 |  |  |  | 13,729 |  |  |  | (2,024 | )
Other — net |  |  | (5,217 | ) |  |  | (7,960 | ) |  |  | (181 | )
Income taxes |  | $ | 73,050 |  |  | $ | 125,398 |  |  | $ | 113,316 |
The Company reinvests the undistributed earnings of its foreign subsidiaries, with the exception of its subsidiaries in Ecuador and Mexico. Accordingly, deferred U.S. federal and state income taxes are provided only on the undistributed earnings of the Company’s subsidiaries in Ecuador and Mexico. As of December 31, 2013, the cumulative amount of undistributed earnings of the foreign subsidiaries on which the Company has not recognized income taxes was approximately $299,000. Determination of the amount of any unrecognized deferred income tax liability on this temporary difference is not practicable because of the complexities of the hypothetical calculation. Deferred Income Taxes The tax effects of significant temporary differences and tax loss and tax credit carryforwards comprising the net long-term deferred income tax liabilities as of December 31, 2012 and 2013 consisted of the following:
|  | December 31, |
|  | 2012 |  |  | 2013 |
Deferred liabilities: |  |  |  |  |  |  |  |
Theatre properties and equipment |  | $ | 96,733 |  |  | $ | 126,794 |
Deferred intercompany sales |  |  | 14,551 |  |  |  | 12,398 |
Intangible asset — other |  |  | 23,944 |  |  |  | 25,761 |
Intangible asset — tradenames |  |  | 115,939 |  |  |  | 122,129 |
Investment in partnerships |  |  | 113,199 |  |  |  | 113,038 |
Total deferred liabilities |  |  | 364,366 |  |  |  | 400,120 |
Deferred assets: |  |  |  |  |  |  |  |
Deferred lease expenses |  |  | 27,255 |  |  |  | 27,811 |
Theatre properties and equipment |  |  | 5,884 |  |  |  | — |
Deferred revenue—NCM and Fandango |  |  | 90,972 |  |  |  | 124,408 |
Capital lease obligations |  |  | 54,551 |  |  |  | 79,064 |
Interest rate swap agreements |  |  | 3,825 |  |  |  | 3,183 |
Tax loss carryforwards |  |  | 7,700 |  |  |  | 7,653 |
Alternative minimum tax and other credit carryforwards |  |  | 6,405 |  |  |  | 20,725 |
Other expenses, not currently deductible for tax purposes |  |  | 30,724 |  |  |  | 33,307 |
Total deferred assets |  |  | 227,316 |  |  |  | 296,151 |
Net deferred income tax liability before valuation allowance |  |  | 137,050 |  |  |  | 103,969 |
Valuation allowance against deferred assets |  |  | 13,326 |  |  |  | 25,711 |
Net deferred income tax liability |  | $ | 150,376 |  |  | $ | 129,680 |
Net deferred tax liability — Foreign |  | $ | 2,488 |  |  | $ | 21,729 |
Net deferred tax liability — U.S. |  |  | 147,888 |  |  |  | 107,951 |
Total |  | $ | 150,376 |  |  | $ | 129,680 |
The Company’s foreign tax credit carryforwards begin expiring in 2015. Some foreign net operating losses will expire in the next reporting period; however, some losses may be carried forward indefinitely. State net operating losses may be carried forward for periods of between five and twenty years with the last expiring year being 2029. Uncertain Tax Positions The following is a reconciliation of the total amounts of unrecognized tax benefits excluding interest and penalties, for the years ended December 31, 2011, 2012 and 2013:
|  | Year Ended December 31, |
|  | 2011 |  |  | 2012 |  |  | 2013 |
Balance at January 1, |  | $ | 15,197 |  |  | $ | 18,660 |  |  | $ | 33,222 |
Gross increases — tax positions in prior periods |  |  | 3,153 |  |  |  | 14,462 |  |  |  | 413 |
Gross decreases — tax positions in prior periods |  |  | — |  |  |  | (3,321 | ) |  |  | — |
Gross increases — current period tax positions |  |  | 3,729 |  |  |  | 3,672 |  |  |  | 1,476 |
Gross decreases — current period tax positions |  |  | (633 | ) |  |  | — |  |  |  | — |
Settlements |  |  | (2,467 | ) |  |  | — |  |  |  | (15,444 | )
Foreign currency translation adjustments |  |  | (319 | ) |  |  | (251 | ) |  |  | (887 | )
Balance at December 31, |  | $ | 18,660 |  |  | $ | 33,222 |  |  | $ | 18,780 |
The Company had $34,475 and $20,130 of unrecognized tax benefits, including interest and penalties, as of December 31, 2012 and 2013, respectively. Of these amounts, $30,085 and $17,909 represent the amount of unrecognized tax benefits that if recognized would impact the effective income tax rate for the years ended December 31, 2012 and 2013, respectively. The Company had $4,576 and $4,671 accrued for interest and penalties as of December 31, 2012 and 2013, respectively. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and in certain state and foreign jurisdictions and are routinely under audit by many different tax authorities. The Company believes that its accrual for tax liabilities is adequate for all open audit years based on its assessment of many factors including past experience and interpretations of tax law. This assessment relies on estimates and assumptions and may involve a series of complex judgments about future events. The Company is no longer subject to income tax audits from the Internal Revenue Service for years before 2010. The Company is no longer subject to state income tax examinations by tax authorities in its major state jurisdictions for years before 2009. Certain state returns were amended as a result of the Internal Revenue Service examination closures for 2002 through 2006, and the statutes remain open for those amendments. The Company is no longer subject to non-U.S. income tax examinations by tax authorities in its major non-U.S. tax jurisdictions for years before 2004. The Company is currently under audit in the non-U.S. tax jurisdictions of Brazil and Chile. It is not expected that these audits will close in the next 12 months.

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