Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Reconciliation of Unrecognized Income Tax Benefits

A reconciliation of unrecognized income tax benefits at the beginning and at the end of the year is as follows (in thousands):



	2017			2016
Balance at beginning of year	$	3,982		$	4,761
Additions based on tax positions related to the current year	1,158			1,415
Additions based on tax positions related to prior years	1,244			—
Reductions for tax positions of prior years	(5,543		)	(1,360		)
Reductions for expired statute of limitations	—			(834		)
Balance at end of year	$	841		$	3,982

Schedule of Income Tax Provision

The income tax provision in the accompanying Consolidated Statements of Operations for the years ended December 31, 2017, 2016 and 2015 consisted of the following (in thousands):



	2017			2016			2015
Current:
Federal provision	$	120,317		$	95,171		$	94,405
State and local provisions	23,496			23,387			21,320
Foreign provision	244			749			831
	144,057			119,307			116,556
Deferred	(53,358		)	(8,108		)	(10,300		)
	$	90,699		$	111,199		$	106,256

Schedule of U.S. Statutory Income Tax Rates From Continuing Operations

Factors accounting for the variation from U.S. statutory income tax rates from continuing operations for the years ended December 31, 2017, 2016 and 2015 were as follows (in thousands):



	2017			2016			2015
Federal income taxes at the statutory rate	$	111,562		$	103,773		$	97,588
State and local income taxes, net of federal tax benefits	15,736			14,801			12,590
State tax reserves	(2,543		)	74			62
Permanent differences	4,916			3,698			3,096
Domestic manufacturing deduction	(10,387		)	(6,830		)	(6,604		)
Excess tax benefit from share-based compensation	(1,341		)	(2,114		)	—
Goodwill impairment	17,055			—			—
Foreign income taxes (including UK statutory rate changes)	(2,586		)	(1,290		)	(361		)
Impact of federal rate change on net deferred tax liabilities	(39,343		)	—			—
Federal tax reserves	(1,247		)	(893		)	14
Other	(1,123		)	(20		)	(129		)
	$	90,699		$	111,199		$	106,256

Schedule of Deferred Tax Assets and Liabilities

The deferred income tax assets and deferred income tax liabilities recorded for the years ended December 31, 2017 and 2016 were as follows (in thousands):



	2017			2016
Deferred income tax assets:
Excess of amounts expensed for financial statement purposes over amounts deducted for income tax purposes:
Insurance liabilities	$	42,425		$	62,473
Pension liability	6,900			8,950
Deferred compensation	27,742			35,649
Other (including liabilities and reserves)	28,534			32,350
Total deferred income tax assets	105,601			139,422
Valuation allowance for deferred tax assets	(3,825		)	(3,531		)
Net deferred income tax assets	101,776			135,891
Deferred income tax liabilities:
Costs capitalized for financial statement purposes and deducted for income tax purposes:
Goodwill and identifiable intangible assets	(150,900		)	(229,347		)
Depreciation of property, plant and equipment	(11,781		)	(18,145		)
Other	(3,792		)	(5,761		)
Total deferred income tax liabilities	(166,473		)	(253,253		)
Net deferred income tax liabilities	$	(64,697	)	$	(117,362	)

Schedule of Income before Income Tax From Continuing Operations

Income from continuing operations before income taxes for the years ended December 31, 2017, 2016 and 2015 consisted of the following (in thousands):



	2017		2016		2015
United States	$	303,854	$	283,904	$	264,867
Foreign	14,895		12,590		13,956
	$	318,749	$	296,494	$	278,823