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Income Taxes
3 Months Ended
Mar. 31, 2017
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
For the three months ended March 31, 2017, income tax expense was $73.1 million, representing an effective tax rate of 34%. The effective tax rate differs from the federal statutory rate of 35% due primarily to the tax benefit from domestic production activities deduction of $5.9 million, tax benefit from foreign subsidiary earnings indefinitely reinvested outside the U.S. of $4.1 million, state income tax expense of $3.4 million and tax expense of $2.3 million for an increase in valuation allowances for foreign taxes.
For the three months ended March 31, 2016, income tax expense was $58.5 million, representing an effective tax rate of 33%. The effective tax rate differs from the federal statutory rate of 35% due primarily to the tax benefit from domestic production activities deduction of $5.3 million, tax benefit from foreign subsidiary earnings indefinitely reinvested outside the U.S. of $3.5 million, state income tax expense of $3.2 million and tax expense of $2.0 million for an increase in valuation allowances for foreign taxes.
At March 31, 2017, the Company had foreign tax credit carry forwards of approximately $37 million, expiring on various dates from 2017 through 2027. For the three months ended March 31, 2017, $0.4 million relating to amortization of tax deductible second component goodwill was realized as a reduction in tax liability (as determined on a ‘with-and-without’ approach).