|
Income Taxes (Tables)
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12 Months Ended |
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Dec. 31, 2014
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| Income Tax Disclosure [Abstract] |
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| Provision for Income Tax (Benefit) Expense from Continuing Operations |
The provision for income tax (benefit) expense from continuing operations consists of the following:
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|
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Year Ended December 31,
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|
|
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2014
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2013
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2012
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|
|
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(In thousands)
|
|
|
|
|
|
|
|
|
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Current:
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|
|
|
|
|
|
|
|
|
|
|
|
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Federal
|
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$
|
36,874
|
|
|
$
|
33,367
|
|
|
$
|
22,982
|
|
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State
|
|
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5,771
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|
|
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5,647
|
|
|
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1,090
|
|
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Total current
|
|
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42,645
|
|
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39,014
|
|
|
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24,072
|
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Deferred
|
|
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20,523
|
|
|
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5,329
|
|
|
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25,900
|
|
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Total provision for income taxes - (benefit) expense
|
|
$
|
63,168
|
|
|
$
|
44,343
|
|
|
$
|
49,972
|
|
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| Reconciliation of Statutory Federal Income Tax Rate with Federal and State Overall Effective Income Tax Rate from Continuing Operations |
The reconciliation of the statutory federal income tax rate with Sonic’s federal and state overall effective income tax rate from continuing operations is as follows:
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Year Ended December 31,
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|
|
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2014
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|
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2013
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|
|
2012
|
|
|
|
|
|
|
|
|
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Statutory federal rate
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|
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35.00
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%
|
|
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35.00
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%
|
|
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35.00
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%
|
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Effective state income tax rate
|
|
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3.15
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%
|
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3.22
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%
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|
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4.22
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%
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Valuation allowance adjustments
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|
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(0.14
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%)
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0.33
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%
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(3.15
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%)
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Uncertain tax positions
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(0.08
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%)
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(1.76
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%)
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(3.37
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%)
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Other
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1.13
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%
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(2.42
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%)
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2.68
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%
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Effective tax rate
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|
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39.06
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%
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34.37
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%
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35.38
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%
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| Components of Deferred Tax Assets and Liabilities |
Significant components of Sonic’s deferred tax assets and liabilities are as follows:
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December 31, 2014
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December 31, 2013
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(In thousands)
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Deferred tax assets:
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|
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Accruals and reserves
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$
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36,633
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$
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38,931
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State net operating loss carryforwards
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10,307
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10,194
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Fair value of interest rate swaps
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4,203
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6,185
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Interest and state taxes associated with the liability for uncertain income tax positions
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1,842
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1,910
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Other
|
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792
|
|
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|
701
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Total deferred tax assets
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|
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53,777
|
|
|
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57,921
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Deferred tax liabilities:
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Basis difference in inventory
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(1,597
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)
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(1,636
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)
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Basis difference in property and equipment
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(9,655
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)
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(1,978
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)
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Basis difference in goodwill
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(72,696
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)
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(57,028
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)
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Other
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(3,861
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)
|
|
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(2,328
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)
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Total deferred tax liability
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(87,809
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)
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(62,970
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)
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Valuation allowance
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(6,534
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)
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(6,758
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)
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Net deferred tax asset (liability)
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$
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(40,566
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)
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$
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(11,807
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)
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| Summary of Changes in Liability Related to Unrecognized Tax Benefits |
A summary of the changes in the liability related to Sonic’s unrecognized tax benefits is presented below.
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2014
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2013
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2012
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(In thousands)
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|
|
|
|
|
|
|
|
|
|
|
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Unrecognized tax benefit liability, January 1 (1)
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$
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6,693
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$
|
9,097
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$
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13,689
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Prior period positions:
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Increases
|
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|
181
|
|
|
|
409
|
|
|
|
35
|
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Decreases
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(66
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)
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|
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(233
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)
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(1,101
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)
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Increases from current period positions
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195
|
|
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|
799
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1,155
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Settlements
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(897
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)
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(1,721
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)
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(2,924
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)
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Lapse of statute of limitations
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|
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(170
|
)
|
|
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(1,164
|
)
|
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(1,275
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)
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Other
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|
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(196
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)
|
|
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(494
|
)
|
|
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(482
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)
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Unrecognized tax benefit liability, December 31 (2)
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|
$
|
5,740
|
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$
|
6,693
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$
|
9,097
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(1)
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Excludes accrued interest and penalties of $1.1 million, $2.4 million and $4.9 million at January 1, 2014, 2013 and 2012, respectively.
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(2)
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Excludes accrued interest and penalties of $1.2 million, $1.1 million and $2.4 million at December 31, 2014, 2013 and 2012, respectively. Amount presented is net of state net operating losses of $0.8 million, $1.0 million and $1.3 million at December 31, 2014, 2013 and 2012, respectively.
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