XML 86 R15.htm IDEA: XBRL DOCUMENT v3.3.0.814
Income Tax Income Tax
 9 Months Ended
Sep. 30, 2015
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
Income Tax
Provision for income tax expense differed from the amounts computed by applying the U.S. federal income tax statutory rate of 35% to pre-tax income as a result of the following for the three and nine months ended September 30, 2015 and 2014 (dollars in thousands):
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
 
2015
 
2014
 
2015
 
2014
Tax provision at U.S. statutory rate
 
$
49,048

 
$
81,135

 
$
188,318

 
$
256,126

Increase (decrease) in income taxes resulting from:
 
 
 
 
 
 
 
 
Foreign tax rate differing from U.S. tax rate
 
(96
)
 
(3,645
)
 
(5,685
)
 
(11,715
)
Differences in tax bases in foreign jurisdictions
 
(16,221
)
 
(413
)
 
(29,822
)
 
(3,727
)
Deferred tax valuation allowance
 
10,239

 
326

 
21,997

 
(322
)
Amounts related to tax audit contingencies
 
(2,580
)
 
(2,083
)
 
(675
)
 
(527
)
Corporate rate changes
 
—

 
(26
)
 
58

 
(386
)
Subpart F
 
12,188

 
4,426

 
30,074

 
10,555

Foreign tax credits
 
(1,106
)
 
(1,558
)
 
(4,554
)
 
(3,568
)
Return to provision adjustments
 
3,747

 
(4,794
)
 
(1,774
)
 
(8,031
)
Other, net
 
1,384

 
451

 
1,076

 
429

Total provision for income taxes
 
$
56,603

 
$
73,819

 
$
199,013

 
$
238,834

Effective tax rate
 
40.4
%
 
31.8
%
 
37.0
%
 
32.6
%

The third quarter and first nine months of 2015 effective tax rates were higher than the U.S. Statutory rate of 35.0% primarily as a result of a tax accrual related to the Active Financing Exception ("AFE") business extender provision that the U.S. Congress did not pass prior to the end of the quarter and a loss in Australia, which has a lower tax rate than the U.S. The high rate was partially offset with tax benefits associated with claims experience on certain treaties, which is mostly offset with a valuation allowance, and income in other jurisdictions with rates lower than that of the U.S. The third quarter and first nine months of 2014 effective tax rates were lower than the U.S. Statutory rate of 35.0% primarily as a result of income in non-U.S. jurisdictions with lower tax rates than the U.S., the release of a valuation allowance in the first quarter on tax benefits associated with claims experience on certain treaties, and an adjustment to reconcile the 2013 federal income tax provision to the 2013 federal income tax return, which was filed in the third quarter of 2014. These adjustments were partially offset by a tax accrual related to the AFE business extender provision that the U.S. Congress did not pass prior to the end of the quarter.