TAXES ON INCOME TAXES ON INCOME (Tables)
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12 Months Ended |
Dec. 31, 2012
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Income Tax Disclosure [Abstract] |
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Components of Income Tax Expense |
The components of income tax expense for 2012, 2011 and 2010 were as follows:
| | | | | | | | | | | | | | 2012 | | 2011 | | 2010 | Current: | | | | | | Federal | $ | 332,053 |
| | $ | 265,865 |
| | $ | 349,755 |
| State and local | 60,708 |
| | 60,273 |
| | 93,229 |
| Foreign | 2,649 |
| | 2,666 |
| | 4,283 |
| | | | | | | Deferred: | | | | | | Federal | 13,298 |
| | 37,245 |
| | (6,828 | ) | State and local | (6,152 | ) | | (11,073 | ) | | (10,782 | ) | Foreign | (659 | ) | | (274 | ) | | 470 |
| | | | | | | Total | $ | 401,897 |
| | $ | 354,702 |
| | $ | 430,127 |
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Reconciliation of the Federal Statutory Rate |
A reconciliation of the federal statutory rate to the Company's effective tax rate for 2012, 2011 and 2010 was as follows:
| | | | | | | | | | | 2012 | | 2011 | | 2010 | | | | | | | Tax provision at statutory rate | 35.0 | % | | 35.0 | % | | 35.0 | % | State and local income taxes, net of federal benefit | 3.4 |
| | 3.7 |
| | 4.0 |
| Impact of foreign operations | (0.3 | ) | | — |
| | — |
| Tax credits | (0.2 | ) | | (0.5 | ) | | (0.3 | ) | Charge associated with settlement of certain legal claims (see Note 17), a portion for which a tax benefit has not been recorded | — |
| | 5.2 |
| | — |
| Transaction costs associated with business acquisitions (see Note 5), a portion for which a tax benefit has not been recorded | — |
| | 0.3 |
| | — |
| Non-deductible expenses, primarily meals and entertainment expenses | 0.3 |
| | 0.3 |
| | 0.2 |
| Impact of noncontrolling interests | (1.3 | ) | | (1.2 | ) | | (1.2 | ) | Other, net | 0.7 |
| | (1.0 | ) | | (1.1 | ) | | | | | | | Effective tax rate | 37.6 | % | | 41.8 | % | | 36.6 | % |
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Schedule of Deferred Tax Assets and Liabilities |
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities) at December 31, 2012 and 2011 were as follows:
| | | | | | | | | | 2012 | | 2011 | Current deferred tax assets: | | | | Accounts receivable reserves | $ | 90,784 |
| | $ | 85,485 |
| Liabilities not currently deductible | 83,425 |
| | 67,843 |
| | | | | Total current deferred tax assets | $ | 174,209 |
| | $ | 153,328 |
| | | | | Non-current deferred tax assets (liabilities): | | | | Liabilities not currently deductible | $ | 139,869 |
| | $ | 151,621 |
| Stock-based compensation | 58,253 |
| | 72,262 |
| Capitalized R&D expense | 10,413 |
| | 16,899 |
| Net operating loss carryforwards, net of valuation allowance | 104,257 |
| | 121,234 |
| Depreciation and amortization | (484,773 | ) | | (528,129 | ) | | | | | Total non-current deferred tax liabilities, net | $ | (171,981 | ) | | $ | (166,113 | ) |
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Schedule of Unrecognized Benefits |
The total amount of unrecognized tax benefits as of and for the years ended December 31, 2012, 2011 and 2010 consisted of the following:
| | | | | | | | | | | | | | 2012 | | 2011 | | 2010 | | | | | | | Balance, beginning of year | $ | 194,861 |
| | $ | 151,554 |
| | $ | 126,454 |
| Additions: | | | | | | For tax positions of current year | 12,142 |
| | 63,343 |
| | 20,904 |
| For tax positions of prior years | 10,614 |
| | 9,196 |
| | 28,140 |
| Reductions: | | | | | | Changes in judgment | (1,720 | ) | | (13,543 | ) | | (13,467 | ) | Expirations of statutes of limitations | (6,061 | ) | | (2,952 | ) | | (10,477 | ) | Settlements | (10,404 | ) | | (12,737 | ) | | — |
| | | | | | | Balance, end of year | $ | 199,432 |
| | $ | 194,861 |
| | $ | 151,554 |
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