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Income Taxes
6 Months Ended
Jun. 30, 2016
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
For the three and six months ended June 30, 2016, income tax expense was $39,390 and $97,933, respectively, representing an effective tax rate of 32% for both periods. The effective tax rate differs from the federal statutory rate of 35% due primarily to state and local income tax expense of $2,120 and $5,335, tax benefit from foreign subsidiary earnings indefinitely reinvested outside the U.S. of $5,456 and $8,921, tax benefit from the domestic production activities deduction of $4,413 and $9,735 and tax expense of $2,701 and $4,701 resulting from an increase in the valuation allowances for foreign and local taxes for the three and six months ended June 30, 2016, respectively.
For the three and six months ended June 30, 2015, income tax expense was $50,997 and $112,251, respectively, representing an effective tax rate of 37% and 34%, respectively. The effective tax rate differs from the federal statutory rate of 35% due primarily to state and local income tax expense of $2,726 and $6,560, tax benefit from foreign subsidiary earnings indefinitely reinvested outside the U.S. of $939 and $6,201, tax benefit from the domestic production activities deduction of $5,015 and $10,183 and tax expense of $3,957 and $6,788 resulting from an increase in the valuation allowances for foreign and local taxes for the three and six months ended June 30, 2015, respectively.
At June 30, 2016, the Company had foreign tax credit carry forwards of approximately $41,000, expiring on various dates from 2016 through 2026. For the six months ended June 30, 2016, excess tax benefits of $781 relating to share-based compensation awards and $800 relating to amortization of tax deductible second component goodwill were realized as a reduction in tax liability (as determined on a ‘with-and-without’ approach).