XML 59 R26.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income Taxes | Note 17. Income Taxes Earnings before income taxes from continuing operations consist of the following:
|  | Year Ended December 31, |
(in thousands) |  | 2015 |  |  | 2014 |  |  | 2013 |
Foreign |  | $ | 35,571 |  |  | $ | 33,349 |  |  | $ | 25,010 |
United States |  |  | 2,364 |  |  |  | 7,938 |  |  |  | 2,620 |
Income from continuing operations before income taxes |  | $ | 37,935 |  |  | $ | 41,287 |  |  | $ | 27,630 |
Significant components of the income tax provision from continuing operations are as follows:
|  | Year Ended December 31, |
(in thousands) |  | 2015 |  |  | 2014 |  |  | 2013 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
United States: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (876 | ) |  | $ | — |  |  | $ | (3,308 | )
State |  |  | 1,558 |  |  |  | 16 |  |  |  | (286 | )
Foreign |  |  | 9,342 |  |  |  | 9,824 |  |  |  | 9,606 |
Total current |  |  | 10,024 |  |  |  | 9,840 |  |  |  | 6,012 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
United States: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 1,854 |  |  |  | (9,486 | ) |  |  | 2,007 |
State |  |  | (164 | ) |  |  | (125 | ) |  |  | 651 |
Foreign |  |  | (1,221 | ) |  |  | (120 | ) |  |  | (360 | )
Total deferred |  |  | 469 |  |  |  | (9,731 | ) |  |  | 2,298 |
Income tax expense |  | $ | 10,493 |  |  | $ | 109 |  |  | $ | 8,310 |
The Company is subject to income tax in jurisdictions in which it operates. A reconciliation of the statutory federal income tax rate to the effective tax rate of the Company for the years 2013 – 2015 is as follows:
|  | Year Ended December 31, |
(in thousands) |  | 2015 |  |  | 2014 |  |  | 2013 |
Computed income tax expense at statutory federal income tax rate of 35% |  | $ | 13,277 |  |  |  | 35.0 | % |  | $ | 14,450 |  |  |  | 35.0 | % |  | $ | 9,670 |  |  |  | 35.0 | %
State income taxes, net of federal provision |  |  | 1,713 |  |  |  | 4.5 | % |  |  | 227 |  |  |  | 0.5 | % |  |  | 345 |  |  |  | 1.2 | %
Foreign tax rate differentials |  |  | (1,181 | ) |  |  | (3.1 | )% |  |  | (1,262 | ) |  |  | (3.1 | )% |  |  | 77 |  |  |  | 0.3 | %
U.S. tax on foreign earnings (net of foreign tax credits) |  |  | (948 | ) |  |  | (2.5 | )% |  |  | (2,168 | ) |  |  | (5.3 | )% |  |  | (1,831 | ) |  |  | (6.6 | )%
Change in valuation allowance |  |  | (944 | ) |  |  | (2.5 | )% |  |  | (11,650 | ) |  |  | (28.2 | )% |  |  | (2,184 | ) |  |  | (7.9 | )%
Proceeds from life insurance |  |  | — |  |  |  | — |  |  |  | (133 | ) |  |  | (0.3 | )% |  |  | (196 | ) |  |  | (0.7 | )%
Return to provision and other adjustments |  |  | (1,557 | ) |  |  | (4.1 | )% |  |  | (1,401 | ) |  |  | (3.4 | )% |  |  | 1,664 |  |  |  | 6.0 | %
Other, net |  |  | 133 |  |  |  | 0.4 | % |  |  | 2,046 |  |  |  | 5.0 | % |  |  | 765 |  |  |  | 2.8 | %
Income tax expense |  | $ | 10,493 |  |  |  | 27.7 | % |  | $ | 109 |  |  |  | 0.2 | % |  | $ | 8,310 |  |  |  | 30.1 | %
The components of deferred income tax assets and liabilities included in the consolidated balance sheets are as follows:
|  | December 31, |
(in thousands) |  | 2015 |  |  | 2014 |
Deferred tax assets: |  |  |  |  |  |  |  |
Tax credit carryforwards |  | $ | 19,529 |  |  | $ | 21,783 |
Pension, compensation, and other employee benefits |  |  | 23,212 |  |  |  | 23,501 |
Provisions for losses |  |  | 11,119 |  |  |  | 12,127 |
Net operating loss carryforward |  |  | 4,310 |  |  |  | 4,886 |
State income taxes |  |  | 2,944 |  |  |  | 2,979 |
Other deferred income tax assets |  |  | 3,456 |  |  |  | 3,927 |
Total deferred tax assets |  |  | 64,570 |  |  |  | 69,203 |
Valuation allowance |  |  | (2,837 | ) |  |  | (3,781 | )
Foreign deferred tax assets included above |  |  | (2,460 | ) |  |  | (1,536 | )
Net deferred tax assets |  |  | 59,273 |  |  |  | 63,886 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Property and equipment |  |  | (3,510 | ) |  |  | (5,856 | )
Deferred tax related to life insurance |  |  | (5,316 | ) |  |  | (4,962 | )
Goodwill and other intangible assets |  |  | (4,038 | ) |  |  | (2,705 | )
Other deferred income tax liabilities |  |  | (1,115 | ) |  |  | (1,452 | )
Total deferred tax liabilities |  |  | (13,979 | ) |  |  | (14,975 | )
Foreign deferred tax liabilities included above |  |  | 3,471 |  |  |  | 3,671 |
United States net deferred tax assets |  | $ | 48,765 |  |  | $ | 52,582 |
In accordance with ASU 2015-17, all of the Company’s deferred tax assets are reflected as non-current. The Company applied ASU 2015-17 on a retrospective basis. As a result, current deferred tax assets of $22.9 million were reclassified to non-current on the December 31, 2014 consolidated balance sheet. Refer to Note 1 – Summary of Significant Accounting Policies for further information. The Company uses significant judgment in forming conclusions regarding the recoverability of its deferred tax assets and evaluates all available positive and negative evidence to determine if it is more-likely-than-not that the deferred tax assets will be realized. To the extent recovery does not appear likely, a valuation allowance must be recorded. As of December 31, 2015 and 2014, Viad had gross deferred tax assets of $64.6 million and $69.2 million, respectively. These deferred tax assets reflect the expected future tax benefits to be realized upon reversal of deductible temporary differences, and the utilization of net operating loss and tax credit carryforwards. As of December 31, 2015, the Company has foreign tax credit carryforwards of $9.2 million. The credits are subject to a 10-year carryforward period. Of the $9.2 million, $1.0 million will expire in 2020, $6.0 million will expire in 2021, $0.3 million will expire in 2022, and $1.9 million will expire in 2023. As of December 31, 2015, Viad had tax credit carryforwards related to alternative minimum tax of $10.3 million that may be carried forward indefinitely. As of December 31, 2015 and 2014, Viad had gross state and foreign net operating loss carryforwards of $56.0 million and $75.8 million, respectively, for which the Company had deferred tax assets of $4.3 million and $4.9 million, respectively. The state and foreign net operating loss carryforwards expire on various dates from 2016 through 2035. During 2015, the Company decreased its valuation allowance related to state and foreign net operating loss carryforwards by $0.8 million and $0.2 million, respectively. As of December 31, 2015 and 2014, Viad had a valuation allowance of $2.8 million and $3.8 million related to state and foreign net operating loss carryforwards, respectively. While management believes that the deferred tax assets, net of existing valuation allowances will be utilized in future periods, there are inherent uncertainties regarding the ultimate realization of these assets. It is possible that the relative weight of positive and negative evidence regarding the realization of deferred tax assets may change, which could result in a material increase or decrease in the Company’s valuation allowance. Such a change could result in a material increase or decrease to income tax expense in the period the assessment was made. Viad has not recorded deferred taxes on certain historical unremitted earnings of its subsidiaries located in Canada, the United Kingdom, and the Netherlands as management intends to reinvest those earnings in its operations. As of December 31, 2015, the incremental unrecognized tax liability (net of estimated foreign tax credits) related to those undistributed earnings was approximately $3.4 million. To the extent that circumstances change and it becomes apparent that some or all of those undistributed earnings will be remitted to the U.S., Viad would accrue income taxes attributable to such remittance. Viad exercises judgment in determining its income tax provision when the ultimate tax determination is uncertain. Viad classifies liabilities associated with uncertain tax positions as non-current liabilities in its consolidated balance sheets unless they are expected to be paid within the next year. As of December 31, 2015 and 2014, the Company had liabilities associated with uncertain tax positions (including interest and penalties) of $1.5 million and $2.4 million, respectively, which were classified as non-current liabilities. During 2015, the Company recognized a net decrease in the liability for uncertain tax positions for continuing operations of approximately $1.0 million. As of December 31, 2015, Viad had no accrued interest and penalties related to uncertain tax positions for continuing operations which are classified as a component of income tax expense. The tax expense impact of the change in uncertain tax positions was a benefit of $0.3 million after restoration of the deferrals that the uncertain tax positions were previously offset against. The Company does not expect any material positions will be resolved or settled during 2016. The Company had accrued liabilities for uncertain tax positions for discontinued operations of $0.6 million and accrued interest and penalties of $0.5 million as of both December 31, 2015 and 2014. Future tax resolutions or settlements that may occur related to these uncertain tax positions would be recorded through discontinued operations (net of tax, if applicable). The Company does not expect the discontinued operations uncertain tax positions to be resolved or settled within the next twelve months. A reconciliation of the liabilities associated with uncertain tax positions (excluding interest and penalties) is as follows:
(in thousands) |  | Continuing Operations |  |  | Discontinued Operations |  |  | Total |
Balance at December 31, 2012 |  | $ | — |  |  | $ | 636 |  |  | $ | 636 |
Additions for tax positions taken in prior years |  |  | 736 |  |  |  | — |  |  |  | 736 |
Balance at December 31, 2013 |  |  | 736 |  |  |  | 636 |  |  |  | 1,372 |
Additions for tax positions taken in prior years |  |  | 1,019 |  |  |  | — |  |  |  | 1,019 |
Reductions for lapse of applicable statutes |  |  | (472 | ) |  |  | — |  |  |  | (472 | )
Balance at December 31, 2014 |  |  | 1,283 |  |  |  | 636 |  |  |  | 1,919 |
Additions for tax positions taken in prior years |  |  | 43 |  |  |  | — |  |  |  | 43 |
Reductions for tax positions taken in prior years |  |  | (666 | ) |  |  | — |  |  |  | (666 | )
Reductions for lapse of applicable statutes |  |  | (353 | ) |  |  | — |  |  |  | (353 | )
Balance at December 31, 2015 |  | $ | 307 |  |  | $ | 636 |  |  | $ | 943 |
Viad is subject to regular and recurring audits by taxing authorities in jurisdictions in which the Company currently operates or has operated in the past. This includes the United States, Canada, the United Kingdom, Germany, and the Netherlands. Viad’s 2012 through 2015 U.S. federal tax years and various state tax years from 2011 through 2015 remain subject to income tax examinations by tax authorities. The 2006, 2008, and 2010 federal tax years remain subject to adjustment to the extent of federal net operating loss carryback claims. Tax years 2011 through 2015 remain subject to examination by various foreign taxing jurisdictions.

X
- References No definition available. + 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 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=6907707&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=6907707&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=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 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration