INCOME TAXES (Tables)
|
12 Months Ended |
Dec. 31, 2017 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of income tax provision |
The Company’s income tax provision consisted of the following:
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For the years ended December 31, |
2017 |
|
2016 |
|
2015 |
(in thousands) |
|
|
|
|
|
Current: |
|
|
|
|
|
|
|
|
Federal |
$ |
76,178 |
|
|
$ |
69,102 |
|
|
$ |
68,667 |
|
State |
13,406 |
|
|
12,949 |
|
|
11,335 |
|
Foreign |
7,158 |
|
|
14,464 |
|
|
7,534 |
|
Total current tax |
96,742 |
|
|
96,515 |
|
|
87,536 |
|
Deferred: |
|
|
|
|
|
|
|
|
Federal |
17,249 |
|
|
(5,991 |
) |
|
1,286 |
|
State |
1,610 |
|
|
2,892 |
|
|
2,078 |
|
Foreign |
(223 |
) |
|
(149 |
) |
|
129 |
|
Total deferred tax |
18,636 |
|
|
(3,248 |
) |
|
3,493 |
|
Total income tax provision |
$ |
115,378 |
|
|
$ |
93,267 |
|
|
$ |
91,029 |
|
|
| Schedule of primary factors causing income tax expense to be different than the federal statutory rate |
The primary factors causing income tax expense to be different than the federal statutory rate for 2017, 2016, and 2015 are as follows:
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For the years ended December 31, |
2017 |
|
2016 |
|
2015 |
(in thousands) |
|
|
|
|
|
Income tax at statutory rate |
$ |
103,075 |
|
|
$ |
91,222 |
|
|
$ |
85,112 |
|
State income tax expense (net of federal benefit) |
9,979 |
|
|
8,876 |
|
|
8,377 |
|
Foreign tax expense/(benefit) |
(1,613 |
) |
|
9,857 |
|
|
(1,729 |
) |
Foreign tax |
(221 |
) |
|
(19,155 |
) |
|
(2,816 |
) |
Repatriation tax under TCJA |
7,956 |
|
|
— |
|
|
— |
|
Other |
(3,798 |
) |
|
2,467 |
|
|
2,085 |
|
Total income tax provision |
$ |
115,378 |
|
|
$ |
93,267 |
|
|
$ |
91,029 |
|
|
| Schedule of significant components of the deferred tax assets and liabilities |
Significant components of the Company’s deferred tax assets and liabilities at December 31, 2017 and 2016 are as follows:
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|
December 31, |
2017 |
|
2016 |
(in thousands) |
|
|
|
Deferred tax assets: |
|
|
|
|
|
Termite accrual |
$ |
1,241 |
|
|
$ |
1,848 |
|
Insurance and contingencies |
18,374 |
|
|
26,560 |
|
Unearned revenues |
11,152 |
|
|
14,610 |
|
Compensation and benefits |
11,157 |
|
|
15,798 |
|
State and foreign operating loss carryforwards |
7,035 |
|
|
12,817 |
|
Bad debt reserve |
3,203 |
|
|
4,842 |
|
Foreign tax credit |
7,842 |
|
|
18,213 |
|
Other |
1,861 |
|
|
1,804 |
|
Net Pension liability |
— |
|
|
1,109 |
|
Valuation allowance |
(24 |
) |
|
(6,507 |
) |
Total deferred tax assets |
61,841 |
|
|
91,094 |
|
Deferred tax liabilities: |
|
|
|
|
|
Depreciation and amortization |
(18,453 |
) |
|
(21,217 |
) |
Net Pension liability |
(3,709 |
) |
|
— |
|
Intangibles and other |
(21,259 |
) |
|
(28,000 |
) |
Total deferred tax liabilities |
(43,421 |
) |
|
(49,217 |
) |
Net deferred tax assets |
18,420 |
|
|
41,877 |
|
|
| Schedule of valuation allowance |
Analysis of the valuation allowance:
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|
|
|
|
|
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|
December 31, |
2017 |
|
2016 |
(in thousands) |
|
|
|
Valuation allowance at beginning of year |
$ |
6,507 |
|
|
$ |
3,969 |
|
Change in valuation allowance |
(6,483 |
) |
|
2,538 |
|
Valuation allowance at end of year |
$ |
24 |
|
|
$ |
6,507 |
|
|
| Reconciliation of the beginning and ending amount of unrecognized tax benefits |
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
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December 31, |
2017 |
|
2016 |
(in thousands) |
|
|
|
Balance at Beginning of Year |
$ |
2,554 |
|
|
$ |
2,554 |
|
Additions for tax positions of prior years |
594 |
|
|
— |
|
Balance at End of Year |
$ |
3,148 |
|
|
$ |
2,554 |
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|