XML 120 R26.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2013
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The United States and foreign components of income before income taxes, equity in earnings in affiliates, and discontinued operations are as follows:
|  | 2013 |  | 2012 |  | 2011
|  | (In thousands)
Income before income taxes, equity in earnings in affiliates, and discontinued operations |  |  |  |  |  |
United States |  | $ | 71,667 |  |  | $ | 91,048 |  |  | $ | 96,670 |
Foreign |  | 13,480 |  |  | 9,370 |  |  | 14,583 |
|  | 85,147 |  |  | 100,418 |  |  | 111,253 |
Discontinued operations: |  |  |  |  |  |
Income (loss) from operation of discontinued business |  | (2,265 | ) |  | (18,465 | ) |  | 12,572 |
Total |  | $ | 82,882 |  |  | $ | 81,953 |  |  | $ | 123,825 |
The provision (benefit) for income taxes consists of the following components:
|  | 2013 |  | 2012 |  | 2011
|  | (In thousands)
Continuing Operations: |  |  |  |  |  |
Federal income taxes: |  |  |  |  |  |
Current |  | $ | (26,841 | ) |  | $ | 36,631 |  |  | $ | (4,198 | )
Deferred |  | (4,449 | ) |  | (78,275 | ) |  | 36,716 |
|  | (31,290 | ) |  | (41,644 | ) |  | 32,518 |
State income taxes: |  |  |  |  |  |
Current |  | 2,294 |  |  | 5,020 |  |  | 2,099 |
Deferred |  | (1,221 | ) |  | (8,770 | ) |  | 4,732 |
|  | 1,073 |  |  | (3,750 | ) |  | 6,831 |
Foreign income taxes: |  |  |  |  |  |
Current |  | 4,445 |  |  | 5,497 |  |  | 4,211 |
Deferred |  | (278 | ) |  | (665 | ) |  | (388 | )
|  | 4,167 |  |  | 4,832 |  |  | 3,823 |
Total U.S. and foreign |  | (26,050 | ) |  | (40,562 | ) |  | 43,172 |
Discontinued operations: |  |  |  |  |  |
Tax (benefit) provision allocated to discontinued operations |  | — |  |  | (7,805 | ) |  | 4,753 |
Total |  | $ | (26,050 | ) |  | $ | (48,367 | ) |  | $ | 47,925 |
A reconciliation of the statutory U.S. federal tax rate of 35.00% and the effective income tax rate is as follows:
|  | 2013 |  | 2012 |  | 2011
|  | (In thousands)
Continuing operations: |  |  |  |  |  |
Provisions using statutory federal income tax rate |  | $ | 29,801 |  |  | $ | 35,147 |  |  | $ | 38,939 |
State income taxes, net of federal tax benefit |  | 1,104 |  |  | 4,291 |  |  | 4,480 |
REIT Benefit |  | (34,454 | ) |  | — |  |  | — |
Impact of REIT election |  | (14,946 | ) |  | (79,033 | ) |  | — |
Change in contingent tax liabilities |  | (5,701 | ) |  | — |  |  | (337 | )
Impact of nondeductible transaction costs |  | — |  |  | — |  |  | 65 |
Reenactment of Federal Tax Credits |  | (1,084 | ) |  | — |  |  | — |
Other, net |  | (770 | ) |  | (967 | ) |  | 25 |
Total continuing operations |  | (26,050 | ) |  | (40,562 | ) |  | 43,172 |
Discontinued operations: |  |  |  |  |  |
Tax benefit from operations of discontinued business |  | — |  |  | (7,805 | ) |  | 4,753 |
Provision for income taxes |  | $ | (26,050 | ) |  | $ | (48,367 | ) |  | $ | 47,925 |
The Company's effective tax rate, beginning in 2013, differs from the U.S. statutory rate of 35.00% primarily due to a zero tax rate on earnings generated by The Company's REIT operations. In 2013 and 2012, The company had a tax benefit related to the REIT conversion of $14.9 million and $79.0 million respectively, which was primarily related to the revaluation of certain deferred tax assets and liabilities upon conversion to the effective tax rate of the REIT at a zero tax rate. In addition, the Company had a tax benefit in 2013 of $5.7 million primarily related to settlements of uncertain tax positions with the IRS for the tax year 2010 and 2011. The following table presents the breakdown between current and non-current net deferred tax assets as of December 31, 2013 and 2012:
|  | 2013 |  | 2012
|  | (In thousands)
Deferred tax assets - current |  | $ | 20,936 |  |  | $ | 18,290 |
Deferred tax liabilities - current |  | — |  |  | — |
Deferred tax assets - non current |  | 4,821 |  |  | 2,532 |
Deferred tax liabilities - non current |  | (14,689 | ) |  | (15,703 | )
Total net deferred tax assets |  | $ | 11,068 |  |  | $ | 5,119 |
The significant components of the Company's deferred tax assets and liabilities consisted of the following as of December 31, 2013 and 2012:
|  | 2013 |  | 2012
Deferred tax assets: |  | (In thousands)
Net operating losses |  | $ | 22,461 |  |  | $ | 23,062 |
Accrued liabilities |  | 18,879 |  |  | 13,060 |
Deferred compensation |  | 8,604 |  |  | 7,666 |
Accrued compensation |  | 5,736 |  |  | 6,433 |
Deferred revenue |  | 5,523 |  |  | — |
Deferred rent |  | 5,264 |  |  | 4,864 |
Tax credits |  | 4,326 |  |  | 8,380 |
Equity awards |  | 3,822 |  |  | 1,816 |
Other, net |  | 309 |  |  | 8,060 |
Valuation allowance |  | (12,704 | ) |  | (13,506 | )
Total deferred tax assets |  | $ | 62,220 |  |  | $ | 59,835 |
Deferred tax liabilities: |  |  |  |
Intangible assets |  | $ | (43,699 | ) |  | $ | (45,955 | )
Depreciation |  | (7,453 | ) |  | (8,761 | )
Total deferred tax liabilities |  | $ | (51,152 | ) |  | $ | (54,716 | )
Total net deferred tax assets |  | $ | 11,068 |  |  | $ | 5,119 |
Deferred income taxes should be reduced by a valuation allowance if it is not more likely than not that some portion or all of the deferred tax assets will be realized. On a periodic basis, management evaluates and determines the amount of the valuation allowance required and adjusts such valuation allowance accordingly. At year end 2013 and 2012, the Company has a valuation allowance of $12.7 million and $13.5 million, respectively related to deferred tax assets for foreign net operating losses, state net operating losses and state tax credits. The valuation allowance decreased by $0.8 million during the fiscal year ended December 31, 2013. The Company provides income taxes on the undistributed earnings of non-U.S. subsidiaries except to the extent that such earnings are indefinitely invested outside the United States. At December 31, 2013, $12.7 million of accumulated undistributed earnings of non-U.S. subsidiaries were indefinitely invested. At the existing U.S. federal income and applicable foreign withholding tax rates, additional taxes (net of foreign tax credits) of $0.6 million would have to be provided if such earnings were remitted currently. As of the fiscal year ended December 31, 2013, the Company had $26.9 million of Federal net operating loss carryforwards which begin to expire in 2023 and $118.4 million of combined net operating loss carryforwards in various states which began to expire in 2013. The Company has recorded a partial valuation allowance against the deferred tax assets related to the state operating losses. Also as of the fiscal year ended December 31, 2013, the Company had $17.0 million of foreign operating losses which carry forward indefinitely and $2.7 million of state tax credits which began to expire in 2013. The Company has recorded a full and partial valuation allowance against the deferred tax assets related to the foreign operating losses and state tax credits, respectively. The Company recognizes the cost of employee services received in exchange for awards of equity instruments based upon the grant date fair value of those awards. The exercise of non-qualified stock options and vesting of restricted stock awards which have been granted under the Company’s equity award plans give rise to compensation income which is includable in the taxable income of the applicable employees and deducted by the Company for federal and state income tax purposes. Such compensation income results from increases in the fair market value of the Company’s common stock subsequent to the date of grant. At fiscal year end 2013, the deferred tax asset net of a valuation allowance related to unexercised stock options and restricted stock grants for which the Company has recorded a book expense was $3.8 million. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|  | 2013 |  | 2012 |  | 2011
|  | (In thousands)
Balance at Beginning of Period |  | $ | 18,499 |  |  | $ | 6,528 |  |  | $ | 9,062 |
Additions based on tax positions related to the current year |  | — |  |  | 2,437 |  |  | 13 |
Additions for tax positions of prior years |  | 1,543 |  |  | 13,356 |  |  | 43 |
Additions from current year acquisitions |  | — |  |  | — |  |  | 3,848 |
Reductions for tax positions of prior years |  | — |  |  | — |  |  | (3,237 | )
Reductions as a result of a lapse of applicable statutes of limitations |  | (1,298 | ) |  | (592 | ) |  | (845 | )
Settlements |  | (15,978 | ) |  | (3,230 | ) |  | (2,356 | )
Balance at End of Period |  | $ | 2,766 |  |  | $ | 18,499 |  |  | $ | 6,528 |
All amounts in the reconciliation are reported on a gross basis and do not reflect a federal tax benefit on state income taxes. The Company has accrued $2.5 million of accrued uncertain tax benefits as of December 31, 2013 which is inclusive of the federal tax benefit on state income taxes. The Company anticipates a decrease in the unrecognized tax benefits within 12 months of the reporting date of approximately $0.7 million due to lapse of statute of limitation. Settlements reported in the reconciliation for 2011 include amounts related to federal audit adjustments for the years 2002 through 2005, for which a settlement was finalized in 2011. Settlements reported in the reconciliation for 2012 and 2013 include amounts related to federal audit adjustments for the years 2010 and 2011 under the IRS CAP Program. The accrued uncertain tax balance at December 31, 2013 includes $2.5 million of unrecognized tax benefits which, if ultimately recognized, will reduce the Company’s annual effective tax rate. The Company is subject to income taxes in the U.S. federal jurisdiction, and various states and foreign jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for the years before 2010. The Company participated in the voluntary IRS real-time tax audit Compliance Assurance Process (“CAP”) for the 2011 and 2012 tax year. The 2009 and 2010 years were under audit as transition years as provided under the IRS CAP program. The federal income tax audits for 2009 through 2012 were concluded in 2013. The calculation of the Company’s provision (benefit) for income taxes requires the use of significant judgment and involves dealing with uncertainties in the application of complex tax laws and regulations. In determining the adequacy of the Company’s provision (benefit) for income taxes, potential settlement outcomes resulting from income tax examinations are regularly assessed. As such, the final outcome of tax examinations, including the total amount payable or the timing of any such payments upon resolution of these issues, cannot be estimated with certainty. During the fiscal years ended December 31, 2013, December 31, 2012 and January 1, 2012, the Company recognized $0.7 million, $0.0 million and $0.0 million in interest and penalties, respectively. The Company had accrued $0.4 million for the payment of interest and penalties at December 31, 2012. Accrued interest and penalties was not significant at December 31, 2013. The Company classifies interest and penalties as interest expense and other expense, respectively.

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