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Income Taxes
9 Months Ended
Sep. 30, 2015
Income Taxes  
Income Taxes

 

Note 13. Income Taxes

 

The Company recognized income tax expense of $32.2 million and $100.5 million for the three and nine months ended September 30, 2015, respectively. The Company recognized income tax expense of $37.5 million and $103.6 million for the same periods in 2014.

 

The Company recognizes accrued interest and penalties relating to uncertain tax positions as an income tax provision expense. The Company recognized a benefit on accrued interest and penalties of $0.3 million for both the nine months ended September 30, 2015 and 2014. The Company had approximately $2.2 million and $2.5 million of accrued interest and penalties as of September 30, 2015 and December 31, 2014, respectively.

 

The Company and its subsidiaries file federal and various state income tax returns. The Company is currently being audited by the Internal Revenue Service (“IRS”) for the tax year 2014 and 2015. The Company is also under audit with the California Franchise Tax Board for the tax years 2005 to 2007. The Company has recorded a $1.1 million tax benefit in the current quarter in connection with the pending completion of the Franchise Tax Board audit.

 

From time to time, there may be differences in opinion with respect to the tax treatment of certain transactions. If a tax position which was previously recognized on the consolidated financial statements is no longer more likely than not to be sustained upon a challenge from the taxing authorities, the tax benefit from the tax position will be derecognized. The Company did not have any material tax positions for which previously recognized benefits were derecognized during the nine-month period ended September 30, 2015.

 

Prior period income tax expense has been adjusted to reflect the adoption of ASU 2014-01 on January 1, 2015. See Note 1, Summary of Significant Accounting Policies, for further discussion of ASU 2014-01.