Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.6.0.2
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2016
Income Before Income Taxes

Income before income taxes consisted of the following:

 

     Year Ended December 31,  
     2014      2015      2016  

Income before income taxes:

        

U.S.

   $ 205,521      $ 259,652      $ 274,756  

Foreign

     84,542        88,015        85,890  
  

 

 

    

 

 

    

 

 

 

Total

   $ 290,063      $ 347,667      $ 360,646  
  

 

 

    

 

 

    

 

 

 
Current and Deferred Income Taxes

Current and deferred income taxes were as follows:

 

     Year Ended December 31,  
     2014      2015      2016  

Current:

        

Federal

   $ 61,732      $ 71,288      $ 65,303  

Foreign

     27,681        35,874        32,047  

State

     6,125        10,682        11,936  
  

 

 

    

 

 

    

 

 

 

Total current expense

   $ 95,538      $ 117,844      $ 109,286  
  

 

 

    

 

 

    

 

 

 

Deferred:

        

Federal

   $ 6,322      $ 10,420      $ (13,667

Foreign

     (6,437      (3,339      1,674  

State

     641        4,014        6,526  
  

 

 

    

 

 

    

 

 

 

Total deferred taxes

     526        11,095        (5,467
  

 

 

    

 

 

    

 

 

 

Income taxes

   $ 96,064      $ 128,939      $ 103,819  
  

 

 

    

 

 

    

 

 

 
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,  
     2014     2015     2016  

Computed statutory tax expense

   $ 101,522     $ 121,683     $ 126,226  

Foreign inflation adjustments

     641       (1,295     (281

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

     4,549       9,559       11,999  

Foreign losses not benefited and changes in valuation allowance

     (275     (2,408     (34,757

Foreign tax rate differential

     (2,125     (2,660     (942

Foreign dividends

     1,083       —         68,684  

Foreign tax credits

     —         —         (62,815

Sale of Mexican subsidiaries and related changes in intangible assets

     (10,065     —         —    

Changes in uncertain tax positions

     (1,540     3,717       921  

Other — net

     2,274       343       (5,216
  

 

 

   

 

 

   

 

 

 

Income taxes

   $ 96,064     $ 128,939     $ 103,819  
  

 

 

   

 

 

   

 

 

 
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, 2015 and 2016 consisted of the following:

 

     December 31,  
     2015      2016  

Deferred liabilities:

     

Theatre properties and equipment

   $ 141,155      $ 176,781  

Tax impact of items in accumulated other comprehensive loss

     158        —    

Intangible asset — other

     28,889        36,052  

Intangible asset — tradenames

     112,413        112,747  

Investment in partnerships

     108,733        107,066  
  

 

 

    

 

 

 

Total deferred liabilities

     391,348        432,646  
  

 

 

    

 

 

 

Deferred assets:

     

Deferred lease expenses

     26,966        24,026  

Exchange (gain) loss

     3,736        (731

Deferred revenue — NCM

     128,642        130,005  

Capital lease obligations

     75,966        85,721  

Tax loss carryforwards

     7,379        7,396  

Alternative minimum tax and other credit carryforwards

     41,300        56,520  

Other expenses, not currently deductible for tax purposes

     20,204        11,270  
  

 

 

    

 

 

 

Total deferred assets

     304,193        314,207  
  

 

 

    

 

 

 

Net deferred income tax liability before valuation allowance

     87,155        118,439  

Valuation allowance against deferred assets — non-current

     50,636        14,524  
  

 

 

    

 

 

 

Net deferred income tax liability

   $ 137,791      $ 132,963  
  

 

 

    

 

 

 

Net deferred tax liability — Foreign

   $ 4,212      $ 7,571  

Net deferred tax liability — U.S.

     133,579        125,392  
  

 

 

    

 

 

 

Total

   $ 137,791      $ 132,963  
  

 

 

    

 

 

 
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, 2014, 2015 and 2016:

 

     Year Ended December 31,  
     2014      2015      2016  

Balance at January 1,

   $ 18,780      $ 16,515      $ 17,133  

Gross increases — tax positions in prior periods

     10        40        13  

Gross decreases — tax positions in prior periods

     (2,379      —          —    

Gross increases — current period tax positions

     1,324        2,112        923  

Settlements

     (963      (871      (924

Foreign currency translation adjustments

     (257      (663      258  
  

 

 

    

 

 

    

 

 

 

Balance at December 31,

   $ 16,515      $ 17,133      $ 17,403