Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v2.4.0.6
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2012
Income before income taxes

Income before income taxes consisted of the following:

 

     Year Ended December 31,  
     2010     2011     2012  

Income before income taxes:

      

U.S.

   $ 124,335      $ 114,692      $ 183,207   

Foreign

     83,166        90,940        113,611   
  

 

 

   

 

 

   

 

 

 

Total

   $ 207,501      $ 205,632      $ 296,818   
  

 

 

   

 

 

   

 

 

 

Current:

      

Federal

   $ 35,172      $ 17,070      $ 55,399   

Foreign

     21,933        26,830        53,964   

State

     9,336        7,099        8,494   
  

 

 

   

 

 

   

 

 

 

Total current expense

     66,441        50,999        117,857   
  

 

 

   

 

 

   

 

 

 

Deferred:

      

Federal

     (143     22,100        12,096   

Foreign

     (7,188     (2,332     (6,007

State

     (1,272     2,283        1,452   
  

 

 

   

 

 

   

 

 

 

Total deferred taxes

     (8,603     22,051        7,541   
  

 

 

   

 

 

   

 

 

 

Income taxes

   $ 57,838      $ 73,050      $ 125,398   
  

 

 

   

 

 

   

 

 

 
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,  
     2010     2011     2012  

Computed normal tax expense

   $ 72,625      $ 71,972      $ 103,886   

Foreign inflation adjustments

     47        (1,587     (33

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

     5,195        7,310        7,456   

Foreign losses not benefited and other changes in valuation allowance

     (5,685     (676     (711

Foreign tax rate differential

     (4,798     (3,321     (1,545

Foreign dividends

     3,952        4,173        10,576   

Changes in uncertain tax positions

     (8,080     396        13,729   

Other — net

     (5,418     (5,217     (7,960
  

 

 

   

 

 

   

 

 

 

Income taxes

   $ 57,838      $ 73,050      $ 125,398   
  

 

 

   

 

 

   

 

 

 
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, 2011 and 2012 consisted of the following:

 

     December 31,  
     2011      2012  

Deferred liabilities:

     

Theatre properties and equipment

   $ 92,466       $ 96,733   

Deferred intercompany sales

     12,051         14,551   

Intangible asset — other

     24,749         23,944   

Intangible asset — tradenames

     116,333         115,939   

Investment in partnerships

     98,742         113,199   
  

 

 

    

 

 

 

Total deferred liabilities

     344,341         364,366   
  

 

 

    

 

 

 

Deferred assets:

     

Deferred lease expenses

     23,225         27,255   

Theatre properties and equipment

     5,910         5,884   

Deferred revenue — NCM and Fandango

     88,616         90,972   

Capital lease obligations

     51,211         54,551   

Interest rate swap agreements

     5,882         3,825   

Tax loss carryforwards

     10,602         7,700   

Alternative minimum tax and other credit carryforwards

     7,548         6,405   

Other expenses, not currently deductible for tax purposes

     23,750         30,724   
  

 

 

    

 

 

 

Total deferred assets

     216,744         227,316   
  

 

 

    

 

 

 

Net deferred income tax liability before valuation allowance

     127,597         137,050   

Valuation allowance against deferred assets

     15,443         13,326   
  

 

 

    

 

 

 

Net deferred income tax liability

   $ 143,040       $ 150,376   
  

 

 

    

 

 

 

Net deferred tax liability — Foreign

   $ 10,757       $ 2,488   

Net deferred tax liability — U.S.

     132,283         147,888   
  

 

 

    

 

 

 

Total

   $ 143,040       $ 150,376   
  

 

 

    

 

 

 
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, 2010, 2011 and 2012:

 

     Year Ended December 31,  
     2010     2011     2012  

Balance at January 1,

   $ 23,857      $ 15,197      $ 18,660   

Gross increases — tax positions in prior periods

     —          3,153        14,462   

Gross decreases — tax positions in prior periods

     (1,392     —          (3,321

Gross increases — current period tax positions

     3,551        3,729        3,672   

Gross decreases — current period tax positions

     (613     (633     —     

Settlements

     (10,383     (2,467     —     

Foreign currency translation adjustments

     177        (319     (251
  

 

 

   

 

 

   

 

 

 

Balance at December 31,

   $ 15,197      $ 18,660      $ 33,222