XML 97 R14.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2014
Income Taxes [Abstract] |
Income Taxes | Note 7 — Income Taxes We and our subsidiaries file a consolidated U.S. federal income tax return. We believe that our recorded assets and liabilities are reasonable; however, tax laws and regulations are subject to interpretation and tax litigation is inherently uncertain, and therefore our assessments can involve a series of complex judgments about future events and rely heavily on estimates and assumptions. Components of income tax provision (benefit) on continuing operations reflected in the consolidated statements of operations consisted of the following (in thousands):
|  | Year Ended December 31, |
|  | 2014 |  | 2013 |  | 2012 |
Current | $ | 43,817 | $ | 57,128 | $ | 6,572 |
Deferred |  | 23,154 |  | (25,516) |  | (65,730) |
| $ | 66,971 | $ | 31,612 | $ | (59,158) |
Domestic | $ | 29,613 | $ | 11,615 | $ | (78,211) |
Foreign |  | 37,358 |  | 19,997 |  | 19,053 |
| $ | 66,971 | $ | 31,612 | $ | (59,158) |
Components of income (loss) before income taxes are as follows (in thousands):
|  | Year Ended December 31, |
|  | 2014 |  | 2013 |  | 2012 |
Domestic | $ | 73,700 | $ | 36,176 | $ | (256,859) |
Foreign |  | 188,821 |  | 107,412 |  | 130,861 |
| $ | 262,521 | $ | 143,588 | $ | (125,998) |
Income taxes have been provided based on the U.S. statutory rat e of 35% and at the local statutory rate for each foreign jurisdiction adjusted for items that are allowed as deductions for federal and foreign income tax reporting purposes, but not for book purposes. The primary differences between the statutory rate and our effective rate from continuing operations are as follows:
| Year Ended December 31, |
| 2014 |  | 2013 |  | 2012 |
Statutory rate | 35.0 | % | 35.0 | % | 35.0 | %
Foreign provision | (9.1) |  | (11.6) |  | 11.2 |
Other | (0.4) |  | (1.4) |  | 0.8 |
Effective rate | 25.5 | % | 22.0 | % | 47.0 | %
Deferred income taxes result from the effect of transactions that are recognized in different periods for financial and tax reporting purposes. The nature of these differences and the income tax effect of each as of December 31, 2014 and 2013 are as follows (in thousands):
|  | 2014 |  | 2013 |
Deferred tax liabilities: |  |  |  |  |
Depreciation | $ | 211,903 | $ | 169,404 |
Original Issue Discount on 2032 Notes |  | 16,269 |  | 14,720 |
Equity investments in production facilities |  | 50,685 |  | 84,870 |
Prepaid and other |  | 4,211 |  | 7,556 |
Total deferred tax liabilities | $ | 283,068 | $ | 276,550 |
Deferred tax assets: |  |  |  |  |
Net operating losses | $ | (23,076) | $ | (40,105) |
Reserves, accrued liabilities and other |  | (53,973) |  | (44,999) |
Total deferred tax assets |  | (77,049) |  | (85,104) |
Valuation allowance |  | 23,076 |  | 22,860 |
Net deferred tax liabilities | $ | 229,095 | $ | 214,306 |
Deferred income tax is presented as: |  |  |  |  |
Current deferred tax assets |  | (31,180) |  | (51,573) |
Noncurrent deferred tax liabilities |  | 260,275 |  | 265,879 |
Net deferred tax liabilities | $ | 229,095 | $ | 214,306 |
At December 31, 2014, we had a $23.1 million valuation allowance related to certain non-U.S. deferred tax assets, primarily net operating losses generated in Australia, as management believes it is more likely than not that we will not be able to utilize the tax benefit. Additional valuation allowances may be made in the future if in management’s opinion it is more likely than not that the tax benefit will not be utilized. We consider the undistributed earnings of our principal non-U.S. subsidiaries to be permanently reinvested. At December 31, 2014 and 2013, our principal non-U.S. subsidiaries had accumulated earnings and profits of approximately $338.0 million and $202.6 million, respectively. We have not provided deferred U.S. income tax on the accumulated earnings and profits as we consider them permanently reinvested. We had no uncertain tax positions as of December 31, 2014. We account for tax-related interest in interest expense and tax penalties in selling, general and administrative expenses. We accru ed $0.2 million for interest in each of 201 2 and 201 3, which brought our total liabilities for interest and penalties to $1.3 million i n the accompanying consolidated balance sheet at December 31, 2013. A t both December 31, 2013 and 2012, we had $3.4 million of unrecognized tax benefits that if recognized would have affected the annual effective rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):
|  | 2014 |  | 2013 |  | 2012 |
Balance at January 1, | $ | 4,723 | $ | 4,506 | $ | 7,085 |
Additions for tax positions of prior years |  | - |  | 217 |  | 206 |
Reductions for tax positions of prior years |  | (4,723) |  | - |  | (2,785) |
Balance at December 31, | $ | - | $ | 4,723 | $ | 4,506 |
In 2012, we reversed a $2.8 million long-term liability originally recorded in 2011 related to an uncertain tax position that we ultimately did not take when the 2011 tax return was filed. In 2014, we recognized a $3.4 million tax benefit as a result of the completion of examination procedures for the 2006 through 2010 audit period by the U.S. Internal Revenue Service (“IRS”) (see below). In connection with the recognition of that benefit, we reversed approximately $1.3 million of accrued interest and penalties. We file tax returns in the U.S. and in various state, local and non-U.S. jurisdictions. We anticipate that any potential adjustments to our state, local and non-U.S. jurisdiction tax returns by tax authorities would not have a material impact on our financial position. In June 2014, the IRS and the Joint Committee on Taxation completed the examination procedures including all appeals and administrative reviews that the taxing authorities are required and expected to perform for the 2006 through 2010 audit period, and in September 2014, we received an income tax refund in the amount of $35.2 million. The refund was primarily attributable to the utilization of a net operating loss carryback from 2010. The tax periods from 2006 through 2014 remain open to review and examination by the IRS. In non-U.S. jurisdictions, the open tax periods include 2009 through 2014.

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