Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2013
|
Income Before Income Taxes |
Income before
income taxes consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, |
|
|
|
2011 |
|
|
2012 |
|
|
2013 |
|
Income before income
taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
$ |
114,692 |
|
|
$ |
183,207 |
|
|
$ |
162,687 |
|
Foreign
|
|
|
90,940 |
|
|
|
113,611 |
|
|
|
101,177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
205,632 |
|
|
$ |
296,818 |
|
|
$ |
263,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current and
deferred income taxes were as follows:
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|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, |
|
|
|
2011 |
|
|
2012 |
|
|
2013 |
|
Current:
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
$ |
17,070 |
|
|
$ |
55,399 |
|
|
$ |
97,467 |
|
Foreign
|
|
|
26,830 |
|
|
|
53,964 |
|
|
|
42,690 |
|
State
|
|
|
7,099 |
|
|
|
8,494 |
|
|
|
10,951 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
expense
|
|
|
50,999 |
|
|
|
117,857 |
|
|
|
151,108 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred:
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
|
22,100 |
|
|
|
12,096 |
|
|
|
(30,833 |
) |
Foreign
|
|
|
(2,332 |
) |
|
|
(6,007 |
) |
|
|
2,653 |
|
State
|
|
|
2,283 |
|
|
|
1,452 |
|
|
|
(9,612 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deferred
taxes
|
|
|
22,051 |
|
|
|
7,541 |
|
|
|
(37,792 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
$ |
73,050 |
|
|
$ |
125,398 |
|
|
$ |
113,316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Year Ended
December 31, |
|
|
|
2011 |
|
|
2012 |
|
|
2013 |
|
Computed normal tax
expense
|
|
$ |
71,972 |
|
|
$ |
103,886 |
|
|
$ |
92,353 |
|
Foreign inflation
adjustments
|
|
|
(1,587 |
) |
|
|
(33 |
) |
|
|
67 |
|
State and local income
taxes, net of federal income tax impact
|
|
|
7,310 |
|
|
|
7,456 |
|
|
|
789 |
|
Foreign losses not
benefited and other changes in valuation allowance
|
|
|
(676 |
) |
|
|
(711 |
) |
|
|
(2,052 |
) |
Foreign tax rate
differential
|
|
|
(3,321 |
) |
|
|
(1,545 |
) |
|
|
(336 |
) |
Foreign
dividends
|
|
|
4,173 |
|
|
|
10,576 |
|
|
|
3,294 |
|
Sale of Mexican
subsidiaries
|
|
|
— |
|
|
|
— |
|
|
|
21,406 |
|
Changes in uncertain tax
positions
|
|
|
396 |
|
|
|
13,729 |
|
|
|
(2,024 |
) |
Other —
net
|
|
|
(5,217 |
) |
|
|
(7,960 |
) |
|
|
(181 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
$ |
73,050 |
|
|
$ |
125,398 |
|
|
$ |
113,316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2012 and 2013 consisted of the
following:
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
2012 |
|
|
2013 |
|
Deferred
liabilities:
|
|
|
|
|
|
|
|
|
Theatre properties and
equipment
|
|
$ |
96,733 |
|
|
$ |
126,794 |
|
Deferred intercompany
sales
|
|
|
14,551 |
|
|
|
12,398 |
|
Intangible
asset — other
|
|
|
23,944 |
|
|
|
25,761 |
|
Intangible
asset — tradenames
|
|
|
115,939 |
|
|
|
122,129 |
|
Investment in
partnerships
|
|
|
113,199 |
|
|
|
113,038 |
|
|
|
|
|
|
|
|
|
|
Total deferred
liabilities
|
|
|
364,366 |
|
|
|
400,120 |
|
|
|
|
|
|
|
|
|
|
Deferred assets:
|
|
|
|
|
|
|
|
|
Deferred lease
expenses
|
|
|
27,255 |
|
|
|
27,811 |
|
Theatre properties and
equipment
|
|
|
5,884 |
|
|
|
— |
|
Deferred revenue—NCM
and Fandango
|
|
|
90,972 |
|
|
|
124,408 |
|
Capital lease
obligations
|
|
|
54,551 |
|
|
|
79,064 |
|
Interest rate swap
agreements
|
|
|
3,825 |
|
|
|
3,183 |
|
Tax loss
carryforwards
|
|
|
7,700 |
|
|
|
7,653 |
|
Alternative minimum tax and
other credit carryforwards
|
|
|
6,405 |
|
|
|
20,725 |
|
Other expenses, not
currently deductible for tax purposes
|
|
|
30,724 |
|
|
|
33,307 |
|
|
|
|
|
|
|
|
|
|
Total deferred
assets
|
|
|
227,316 |
|
|
|
296,151 |
|
|
|
|
|
|
|
|
|
|
Net deferred income tax
liability before valuation allowance
|
|
|
137,050 |
|
|
|
103,969 |
|
Valuation allowance against
deferred assets
|
|
|
13,326 |
|
|
|
25,711 |
|
|
|
|
|
|
|
|
|
|
Net deferred income tax
liability
|
|
$ |
150,376 |
|
|
$ |
129,680 |
|
|
|
|
|
|
|
|
|
|
Net deferred tax
liability — Foreign
|
|
$ |
2,488 |
|
|
$ |
21,729 |
|
Net deferred tax
liability — U.S.
|
|
|
147,888 |
|
|
|
107,951 |
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
150,376 |
|
|
$ |
129,680 |
|
|
|
|
|
|
|
|
|
|
|
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, 2011, 2012 and 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, |
|
|
|
2011 |
|
|
2012 |
|
|
2013 |
|
Balance at
January 1,
|
|
$ |
15,197 |
|
|
$ |
18,660 |
|
|
$ |
33,222 |
|
Gross increases — tax
positions in prior periods
|
|
|
3,153 |
|
|
|
14,462 |
|
|
|
413 |
|
Gross decreases — tax
positions in prior periods
|
|
|
— |
|
|
|
(3,321 |
) |
|
|
— |
|
Gross increases —
current period tax positions
|
|
|
3,729 |
|
|
|
3,672 |
|
|
|
1,476 |
|
Gross decreases —
current period tax positions
|
|
|
(633 |
) |
|
|
— |
|
|
|
— |
|
Settlements
|
|
|
(2,467 |
) |
|
|
— |
|
|
|
(15,444 |
) |
Foreign currency
translation adjustments
|
|
|
(319 |
) |
|
|
(251 |
) |
|
|
(887 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
December 31,
|
|
$ |
18,660 |
|
|
$ |
33,222 |
|
|
$ |
18,780 |
|
|
|
|
|
|
|
|
|
|
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|