XML 66 R19.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2013
Income Tax Disclosure [Abstract] |
Income Taxes | Note J — Income Taxes A reconciliation of the federal statutory rate of 35% to actual follows:
|  | Year Ended December 31,
|  | 2013 |  | 2012 |  | 2011
Tax at statutory rate |  | 35.0 | % |  | 35.0 | % |  | 35.0 | %
State income taxes, net of federal benefit |  | 2.6 | % |  | 1.5 | % |  | 1.9 | %
Effect of foreign operations, net of foreign tax credits |  | 0.4 | % |  | (0.2 | )% |  | 0.3 | %
Other, net |  | 0.2 | % |  | (0.2 | )% |  | (1.4 | )%
Total |  | 38.2 | % |  | 36.1 | % |  | 35.8 | %
The components of income tax expense are as follows:
|  | Year Ended December 31,
|  | 2013 |  | 2012 |  | 2011
|  | (In thousands)
Current expense |  |  |  |  |  |
Federal |  | $ | 45,784 |  |  | $ | 86,839 |  |  | $ | 4,154 |
State |  | 5,888 |  |  | 10,428 |  |  | 6,547 |
Foreign |  | 5,659 |  |  | 3,100 |  |  | 3,762 |
Total current |  | 57,331 |  |  | 100,367 |  |  | 14,463 |
Deferred expense |  |  |  |  |  |
Federal |  | 20,427 |  |  | 6,589 |  |  | 76,336 |
State |  | 2,494 |  |  | (4,069 | ) |  | 1,090 |
Foreign |  | (1,134 | ) |  | (142 | ) |  | (631 | )
Total deferred |  | 21,787 |  |  | 2,378 |  |  | 76,795 |
Total |  | $ | 79,118 |  |  | $ | 102,745 |  |  | $ | 91,258 |
Deferred tax assets (liabilities) consist of the following:
|  | December 31,
|  | 2013 |  | 2012
|  | (In thousands)
Deferred tax assets |  |  |  |
Federal net operating loss carryforwards |  | $ | 1,798 |  |  | $ | 7,873 |
State net operating loss carryforwards |  | 15,072 |  |  | 14,711 |
Accrued liabilities |  | 54,875 |  |  | 52,909 |
Other assets including credits |  | 2,619 |  |  | 1,402 |
Foreign tax credit carryforwards |  | 10,584 |  |  | 6,771 |
|  | 84,948 |  |  | 83,666 |
Valuation allowance |  | (319 | ) |  | (319 | )
Deferred tax liabilities |  |  |  |
Rental merchandise |  | (256,912 | ) |  | (252,464 | )
Property assets |  | (42,357 | ) |  | (32,815 | )
Intangible assets |  | (108,686 | ) |  | (97,695 | )
|  | (407,955 | ) |  | (382,974 | )
Net deferred taxes |  | $ | (323,326 | ) |  | $ | (299,627 | )
At December 31, 2013, we had approximately $5.1 million of federal net operating loss (“NOL”) carryforwards available to offset future taxable income expiring between 2020 and 2023 and approximately $304.6 million of state NOL carryforwards expiring between 2014 and 2031. All of the federal NOL and 22% of the total remaining state NOL carryforward represent acquired NOLs. Utilization of these NOL's is subject to applicable annual limitations for U.S. state and U.S. federal tax purposes, including section 382 of the Internal Revenue Code of 1986, as amended. In addition, at December 31, 2013, we also had approximately $10.6 million in foreign tax credit (“FTC”) carryforwards expiring between 2020 and 2023. We establish a valuation allowance to the extent we consider it more likely than not that the deferred tax assets attributable to our state NOLs or FTCs will not be recovered. We have not provided for deferred income taxes on undistributed earnings of non-U.S. subsidiaries because of our intention to indefinitely reinvest these earnings outside the U.S. The determination of the amount of the unrecognized deferred income tax liability related to the undistributed earnings is not practicable: however, unrecognized foreign income tax credits would be available to reduce a portion of this liability. We are subject to federal, state, local and foreign income taxes. Along with our U.S. subsidiaries, we file a U.S. federal consolidated income tax return. With few exceptions, we are no longer subject to U.S. federal, state, foreign and local income tax examinations by tax authorities for years before 2010. The appeals process with the Internal Revenue Service (IRS) Office of Appeals for the years 2001 through 2007 has been completed. We reached agreement on all issues except one issue with respect to the 2003 tax year, an issue which occurs in 2004 through 2007 taxable years as well. This matter was heard by the United States Tax Court at trial during November 2011. A favorable decision was issued by the Court on January 14, 2014, and is subject to appeal by the IRS. Our 2010 U. S. federal income tax return has been selected for a limited scope audit and we are also under examination in various states. We do not anticipate that adjustments, if any, regarding the 2003 through 2007 disputed issue, the 2010 federal exam or the various state examinations will result in a material change to our consolidated statement of earnings, financial condition, statement of cash flows or earnings per share. A reconciliation of the beginning and ending amount of unrecognized tax benefits follows:
| (In thousands)
Balance at January 1, 2012 | $ | 9,656 |
Additions for tax positions of prior years | 1,411 |
Reductions for tax positions of prior years | (489 | )
Settlements | (411 | )
Balance at January 1, 2013 | 10,167 |
Additions based on tax positions related to current year | 50 |
Additions for tax positions of prior years | 3,742 |
Reductions for tax positions of prior years | (786 | )
Balance at December 31, 2013 | $ | 13,173 |
Included in the balance of unrecognized tax benefits at December 31, 2013 is $9.0 million, net of federal benefit, which, if ultimately recognized, will affect our annual effective tax rate. As of December 31, 2013, we have accrued approximately $1.8 million for the payment of interest and recorded interest expense of approximately $455,000 for the year then ended, which are excluded from the reconciliation of unrecognized tax benefits presented above.

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