Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v2.4.1.9
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2014
Income Before Income Taxes

Income before income taxes consisted of the following:

 

     Year Ended December 31,  
     2012      2013      2014  

Income before income taxes:

        

U.S.

   $ 183,207       $ 162,687       $ 205,521   

Foreign

     113,611         101,177         84,542   
  

 

 

    

 

 

    

 

 

 

Total

   $ 296,818       $ 263,864       $ 290,063   
  

 

 

    

 

 

    

 

 

 

Current and deferred income taxes were as follows:

 

     Year Ended December 31,  
     2012      2013      2014  

Current:

        

Federal

   $ 55,399       $ 97,467       $ 61,732   

Foreign

     53,964         42,690         27,681   

State

     8,494         10,951         6,125   
  

 

 

    

 

 

    

 

 

 

Total current expense

     117,857         151,108       $ 95,538   
  

 

 

    

 

 

    

 

 

 

Deferred:

        

Federal

     12,096         (30,833    $ 6,322   

Foreign

     (6,007      2,653         (6,437

State

     1,452         (9,612      641   
  

 

 

    

 

 

    

 

 

 

Total deferred taxes

     7,541         (37,792      526   
  

 

 

    

 

 

    

 

 

 

Income taxes

   $ 125,398       $ 113,316       $ 96,064   
  

 

 

    

 

 

    

 

 

 
Reconciliation Between Income Tax Expense and Taxes Computed

A reconciliation between income tax expense and taxes computed by applying the applicable statutory federal income tax rate to income before income taxes follows:

 

     Year Ended December 31,  
     2012     2013     2014  

Computed statutory tax expense

   $ 103,886      $ 92,353      $ 101,522   

Foreign inflation adjustments

     (33     67        641   

State and local income taxes, net of federal income tax impact

     7,456        789        4,549   

Foreign losses not benefited and other changes in valuation allowance

     (711     (2,052     (275

Foreign tax rate differential

     (1,545     (336     (2,125

Foreign dividends

     10,576        3,294        1,083   

Sale of Mexican subsidiaries and related changes in intangible assets

     —          21,406        (10,065

Changes in uncertain tax positions

     13,729        (2,024     (1,540

Other — net

     (7,960     (181     2,274   
  

 

 

   

 

 

   

 

 

 

Income taxes

   $ 125,398      $ 113,316      $ 96,064   
  

 

 

   

 

 

   

 

 

 
Tax Effects of Significant Temporary Differences and Tax Loss and Tax Credit Carryforwards

The tax effects of significant temporary differences and tax loss and tax credit carryforwards comprising the net long-term deferred income tax liabilities as of December 31, 2013 and 2014 consisted of the following:

 

     December 31,  
     2013      2014  

Deferred liabilities:

     

Theatre properties and equipment

   $ 126,794       $ 127,010   

Tax impact of items in other comprehensive income (loss)

     —           55   

Deferred intercompany sales

     12,398         —     

Intangible asset — other

     25,761         29,342   

Intangible asset — tradenames

     122,129         111,726   

Investment in partnerships

     113,038         111,328   
  

 

 

    

 

 

 

Total deferred liabilities

     400,120         379,461   
  

 

 

    

 

 

 

Deferred assets:

     

Deferred lease expenses

     27,811         27,341   

Deferred revenue — NCM

     124,408         124,366   

Capital lease obligations

     79,064         73,306   

Tax impact of items in other comprehensive income (loss)

     3,183         —     

Tax loss carryforwards

     7,653         7,764   

Alternative minimum tax and other credit carryforwards

     20,725         43,384   

Other expenses, not currently deductible for tax purposes

     33,307         25,807   
  

 

 

    

 

 

 

Total deferred assets

     296,151         301,968   
  

 

 

    

 

 

 

Net deferred income tax liability before valuation allowance

     103,969         77,493   

Valuation allowance against deferred assets — current

     —           2,384   

Valuation allowance against deferred assets — non-current

     25,711         50,489   
  

 

 

    

 

 

 

Net deferred income tax liability

   $ 129,680       $ 130,366   
  

 

 

    

 

 

 

Net deferred tax liability — Foreign

   $ 21,729       $ 12,213   

Net deferred tax liability — U.S.

     107,951         118,153   
  

 

 

    

 

 

 

Total

   $ 129,680       $ 130,366   
  

 

 

    

 

 

 
Reconciliation of Total Amounts of Unrecognized Tax Benefits Excluding Interest and Penalties

The following is a reconciliation of the total amounts of unrecognized tax benefits excluding interest and penalties, for the years ended December 31, 2012, 2013 and 2014:

 

     Year Ended December 31,  
     2012      2013      2014  

Balance at January 1,

   $ 18,660       $ 33,222       $ 18,780   

Gross increases — tax positions in prior periods

     14,462         413         10   

Gross decreases — tax positions in prior periods

     (3,321      —           (2,379

Gross increases — current period tax positions

     3,672         1,476         1,324   

Gross decreases — current period tax positions

     —           —           —     

Settlements

     —           (15,444      (963

Foreign currency translation adjustments

     (251      (887      (257
  

 

 

    

 

 

    

 

 

 

Balance at December 31,

   $ 33,222       $ 18,780       $ 16,515