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Income Taxes
3 Months Ended
Mar. 31, 2017
Income Tax Disclosure [Abstract]  
Income Taxes

9. Income Taxes

During the three months ended March 31, 2017 and 2016, the Company recorded approximately $16.2 million and $15.9 million of income tax expense, respectively. The effective tax rate for the three months ended March 31, 2017 is 34.1% compared to a 38.6% effective tax rate for the same period in the prior year.

 

In the first quarter of 2017, the Company’s excess tax benefit of $0.8 million was reflected as an income tax benefit in the condensed consolidated statements of income as a component of the provision for income taxes as a result of the adoption of the accounting guidance for share-based payment transactions. See “Note 2 – Significant Accounting Policies – Recently Adopted Accounting Pronouncements” for more information. The Company recorded another discrete item as a credit to income tax expense of $1.3 million resulting from anticipated recoveries of income taxes paid for the 2013-2015 tax years.

 

In arriving at these rates, the Company considers a variety of factors including the forecasted full year pre-tax results, the U.S. federal tax rate of 35%, expected non-deductible expenses, and estimated state income taxes. The Company’s final effective tax rate for the full year will be dependent on the level of pre-tax income, discrete items, the apportionment of taxable income among state tax jurisdictions and the extent of non-deductible expenses in relation to pre-tax income.

The Company files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. The Company’s 2013 through 2015 tax years are still subject to examination by the Internal Revenue Service and various tax years remain open to examination in certain state jurisdiction.