INCOME TAXES (Tables)
|
12 Months Ended |
Dec. 31, 2018 |
Income Tax Disclosure [Abstract] |
|
Provision for Federal and Foreign Income Tax Expense for Continuing Operations |
The Company’s provision for federal and foreign income tax expense for continuing operations consisted of the following:
|
|
Year Ended December 31,
|
|
|
|
2016
|
|
|
2017
|
|
|
2018
|
|
Income before income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
$
|
274,756
|
|
|
$
|
280,535
|
|
|
$
|
289,727
|
|
Foreign
|
|
|
85,890
|
|
|
|
64,842
|
|
|
|
21,007
|
|
Total
|
|
$
|
360,646
|
|
|
$
|
345,377
|
|
|
$
|
310,734
|
|
|
Current and Deferred Income Taxes |
Current and deferred income taxes were as follows:
|
|
Year Ended December 31,
|
|
|
|
2016
|
|
|
2017
|
|
|
2018
|
|
Current:
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
$
|
65,303
|
|
|
$
|
54,435
|
|
|
$
|
46,826
|
|
Foreign
|
|
|
32,047
|
|
|
|
29,306
|
|
|
|
11,822
|
|
State
|
|
|
11,936
|
|
|
|
10,632
|
|
|
|
13,594
|
|
Total current expense
|
|
$
|
109,286
|
|
|
$
|
94,373
|
|
|
$
|
72,242
|
|
Deferred:
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
$
|
(13,667
|
)
|
|
$
|
(14,046
|
)
|
|
$
|
27,055
|
|
Foreign
|
|
|
1,674
|
|
|
|
(4,270
|
)
|
|
|
(6,166
|
)
|
State
|
|
|
6,526
|
|
|
|
3,301
|
|
|
|
2,298
|
|
Total deferred taxes
|
|
$
|
(5,467
|
)
|
|
$
|
(15,015
|
)
|
|
$
|
23,187
|
|
Income taxes
|
|
$
|
103,819
|
|
|
$
|
79,358
|
|
|
$
|
95,429
|
|
|
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,
|
|
|
|
2016
|
|
|
2017
|
|
|
2018
|
|
Computed statutory tax expense
|
|
$
|
126,226
|
|
|
$
|
120,882
|
|
|
$
|
65,254
|
|
Foreign inflation adjustments
|
|
|
(281
|
)
|
|
—
|
|
|
—
|
|
State and local income taxes, net of federal income tax impact
|
|
|
11,999
|
|
|
|
12,786
|
|
|
|
12,611
|
|
Foreign losses not benefited and changes in valuation allowance
|
|
|
(34,757
|
)
|
|
|
249
|
|
|
|
822
|
|
Foreign tax rate differential
|
|
|
(942
|
)
|
|
|
(245
|
)
|
|
|
2,235
|
|
Foreign dividends
|
|
|
68,684
|
|
|
|
13,662
|
|
|
|
-
|
|
Foreign tax credits
|
|
|
(62,815
|
)
|
|
|
(21,647
|
)
|
|
|
3,927
|
|
Impacts related to 2017 Tax Act (1)(2)
|
|
—
|
|
|
|
(44,889
|
)
|
|
|
19,180
|
|
Changes in uncertain tax positions
|
|
|
921
|
|
|
|
983
|
|
|
|
(6,139
|
)
|
Other — net
|
|
|
(5,216
|
)
|
|
|
(2,423
|
)
|
|
|
(2,461
|
)
|
Income taxes
|
|
$
|
103,819
|
|
|
$
|
79,358
|
|
|
$
|
95,429
|
|
(1)
|
The amount for the year ended December 31, 2018 includes a one-time charge to true-up deferred taxes of $1,913 and a reduction in deferred tax assets with regard to foreign tax credit carryforwards of $17,267.
|
(2)
|
The amount for the year ended December 31, 2017 includes a one-time benefit due to re-measurement of net deferred tax liabilities using a lower U.S. corporate tax rate and a reassessment of permanently reinvested earnings of ($79,834), a deemed repatriation tax of $14,512, and a reduction in deferred tax assets with regard to foreign tax credit carryforwards of $20,433.
|
|
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, 2017 and 2018 consisted of the following:
|
|
December 31,
|
|
|
|
2017
|
|
|
2018
|
|
Deferred liabilities:
|
|
|
|
|
|
|
|
|
Theatre properties and equipment
|
|
$
|
147,208
|
|
|
$
|
158,797
|
|
Intangible asset — other
|
|
|
30,770
|
|
|
|
33,561
|
|
Intangible asset — tradenames
|
|
|
72,967
|
|
|
|
73,261
|
|
Investment in partnerships
|
|
|
67,449
|
|
|
|
63,217
|
|
Total deferred liabilities
|
|
|
318,394
|
|
|
|
328,836
|
|
Deferred assets:
|
|
|
|
|
|
|
|
|
Deferred lease expenses
|
|
|
14,714
|
|
|
|
13,464
|
|
Exchange loss
|
|
|
220
|
|
|
|
1,306
|
|
Deferred revenue - NCM
|
|
|
85,816
|
|
|
|
70,688
|
|
Capital lease obligations
|
|
|
67,369
|
|
|
|
63,895
|
|
Tax impact of items in accumulated other comprehensive income
|
|
|
—
|
|
|
|
2,237
|
|
Other tax loss carryforwards
|
|
|
15,564
|
|
|
|
15,608
|
|
Other tax credit carryforwards
|
|
|
38,436
|
|
|
|
42,989
|
|
Other expenses, not currently deductible for tax purposes
|
|
|
13,801
|
|
|
|
26,776
|
|
Total deferred assets
|
|
|
235,920
|
|
|
|
236,963
|
|
Net deferred income tax liability before valuation allowance
|
|
|
82,474
|
|
|
|
91,873
|
|
Valuation allowance against deferred assets – non-current
|
|
|
35,246
|
|
|
|
54,725
|
|
Net deferred income tax liability
|
|
$
|
117,720
|
|
|
$
|
146,598
|
|
Net deferred tax (asset) liability — Foreign
|
|
$
|
3,073
|
|
|
$
|
(5,449
|
)
|
Net deferred tax liability — U.S.
|
|
|
114,647
|
|
|
|
152,047
|
|
Total
|
|
$
|
117,720
|
|
|
$
|
146,598
|
|
|
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, 2016, 2017 and 2018:
|
|
Year Ended December 31,
|
|
|
|
2016
|
|
|
2017
|
|
|
2018
|
|
Balance at January 1,
|
|
$
|
17,133
|
|
|
$
|
17,403
|
|
|
$
|
18,266
|
|
Gross increases - tax positions in prior periods
|
|
|
13
|
|
|
|
92
|
|
|
—
|
|
Gross decreases - tax positions in prior periods
|
|
—
|
|
|
|
(12
|
)
|
|
|
(143
|
)
|
Gross increases - current period tax positions
|
|
|
923
|
|
|
|
265
|
|
|
|
424
|
|
Settlements
|
|
|
(924
|
)
|
|
|
(177
|
)
|
|
|
(7,191
|
)
|
Foreign currency translation adjustments
|
|
|
258
|
|
|
|
695
|
|
|
|
(795
|
)
|
Balance at December 31,
|
|
$
|
17,403
|
|
|
$
|
18,266
|
|
|
$
|
10,561
|
|
|