XML 64 R18.htm IDEA: XBRL DOCUMENT v2.4.1.9
Income Taxes
 3 Months Ended
Mar. 31, 2015
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
During the three months ended March 31, 2015, and 2014, the Company recorded income tax provisions of $15.9 million and $11.7 million, respectively.
The effective tax rates for the respective periods are shown below:
 
Three Months Ended March 31,
 
2015
 
2014
Federal provision
35.0
 %
 
35.0
 %
State provision
8.2
 %
 
5.8
 %
State benefit
(2.9
)%
 
(2.0
)%
Tax reserves(1)
0.1
 %
 
0.0
 %
International benefit(2)
(6.0
)%
 
(3.4
)%
Permanent items(3)
0.2
 %
 
2.3
 %
Other(4)
0.0
 %
 
0.7
 %
Effective rate
34.6
 %
 
38.4
 %
________________________
(1)
Represents reserves taken for a certain tax position adopted by the Company.
(2)
Relates primarily to lower tax rates on income attributable to international operations.
(3)
Represents a provision for nondeductible items.
(4)
Includes the effect of discrete items.
The Company’s subsidiary in Costa Rica is operating under a 100% tax holiday through December 31, 2018 and a 50% tax holiday for the subsequent four years. The impact of the tax holiday in Costa Rica for the three months ended March 31, 2015 was immaterial.
The Company had gross unrecognized tax benefits, inclusive of penalties and interest, of $47.7 million and $44.4 million at March 31, 2015 and December 31, 2014, respectively. The total gross unrecognized tax benefits that, if recognized, would result in a net tax benefit of $16.0 million and $12.7 million as of March 31, 2015 and December 31, 2014, respectively. The increase in the gross unrecognized tax benefits was due to an unrecognized tax benefit of $3.3 million associated with certain business combinations. The uncertain tax benefit is included in “Other liabilities” in the Company’s condensed consolidated statements of financial condition.
During the three months ended March 31, 2015, the Company did not provide for United States income taxes or foreign withholding taxes on the quarterly undistributed earnings from operations of its subsidiaries operating outside of the United States. Undistributed net income of these subsidiaries during the three months ended March 31, 2015, was approximately $5.9 million.