Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2017 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Provision for Income Taxes for Continuing Operations - Benefit (Expense) |
The provision for income taxes for continuing operations - benefit (expense) consists of the following:
|
|
|
Year Ended December 31,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
|
|
|
(In thousands)
|
|
|
Current:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
$
|
(34,877
|
)
|
|
$
|
(43,655
|
)
|
|
$
|
(36,241
|
)
|
|
State
|
|
|
(7,292
|
)
|
|
|
(3,766
|
)
|
|
|
(6,414
|
)
|
|
Total current
|
|
|
(42,169
|
)
|
|
|
(47,421
|
)
|
|
|
(42,655
|
)
|
|
Deferred
|
|
|
28,198
|
|
|
|
(13,275
|
)
|
|
|
(14,410
|
)
|
|
Total provision for income taxes for continuing operations - benefit (expense)
|
|
$
|
(13,971
|
)
|
|
$
|
(60,696
|
)
|
|
$
|
(57,065
|
)
|
|
| Reconciliation of Statutory Federal Income Tax Rate with Federal and State Overall Effective Income Tax Rate from Continuing Operations |
The reconciliation of the U.S. statutory federal income tax rate with Sonic’s federal and state overall effective income tax rate from continuing operations is as follows:
|
|
|
Year Ended December 31,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
|
U.S. statutory federal income tax rate
|
|
|
35.00
|
%
|
|
|
35.00
|
%
|
|
|
35.00
|
%
|
|
Effective state income tax rate
|
|
|
4.58
|
%
|
|
|
2.04
|
%
|
|
|
3.26
|
%
|
|
Valuation allowance adjustments
|
|
|
(0.59
|
%)
|
|
|
0.85
|
%
|
|
|
(0.45
|
%)
|
|
Uncertain tax positions
|
|
|
0.71
|
%
|
|
|
0.17
|
%
|
|
|
(0.14
|
%)
|
|
Effect of change in future U.S. statutory federal income tax rate
|
|
|
(26.27
|
%)
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
|
Other
|
|
|
(0.51
|
%)
|
|
|
1.05
|
%
|
|
|
1.64
|
%
|
|
Effective income tax rate
|
|
|
12.92
|
%
|
|
|
39.11
|
%
|
|
|
39.31
|
%
|
|
| Components of Deferred Tax Assets and Liabilities |
Significant components of Sonic’s deferred tax assets and liabilities are as follows:
|
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
|
|
|
(In thousands)
|
|
|
Deferred tax assets:
|
|
|
|
|
|
|
|
|
|
Accruals and reserves
|
|
$
|
24,320
|
|
|
$
|
34,884
|
|
|
State net operating loss carryforwards
|
|
|
12,689
|
|
|
|
10,777
|
|
|
Fair value of interest rate swaps
|
|
|
-
|
|
|
|
1,406
|
|
|
Interest and state taxes associated with the liability for uncertain income tax positions
|
|
|
1,126
|
|
|
|
1,746
|
|
|
Other
|
|
|
712
|
|
|
|
774
|
|
|
Total deferred tax assets
|
|
|
38,847
|
|
|
|
49,587
|
|
|
Deferred tax liabilities:
|
|
|
|
|
|
|
|
|
|
Fair value of interest rate swaps
|
|
|
(696
|
)
|
|
|
-
|
|
|
Basis difference in inventories
|
|
|
(965
|
)
|
|
|
(1,506
|
)
|
|
Basis difference in property and equipment
|
|
|
(2,467
|
)
|
|
|
(9,335
|
)
|
|
Basis difference in goodwill
|
|
|
(73,803
|
)
|
|
|
(101,999
|
)
|
|
Other
|
|
|
(1,636
|
)
|
|
|
(3,540
|
)
|
|
Total deferred tax liabilities
|
|
|
(79,567
|
)
|
|
|
(116,380
|
)
|
|
Valuation allowance
|
|
|
(7,985
|
)
|
|
|
(7,211
|
)
|
|
Net deferred tax asset (liability)
|
|
$
|
(48,705
|
)
|
|
$
|
(74,004
|
)
|
|
| 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.
|
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
|
|
|
(In thousands)
|
|
|
Unrecognized tax benefit liability, January 1 (1)
|
|
$
|
4,357
|
|
|
$
|
4,755
|
|
|
$
|
5,740
|
|
|
New positions
|
|
|
653
|
|
|
|
-
|
|
|
|
-
|
|
|
Prior period positions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increases
|
|
|
491
|
|
|
|
939
|
|
|
|
175
|
|
|
Decreases
|
|
|
(539
|
)
|
|
|
(415
|
)
|
|
|
-
|
|
|
Increases from current period positions
|
|
|
692
|
|
|
|
615
|
|
|
|
184
|
|
|
Settlements
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Lapse of statute of limitations
|
|
|
(781
|
)
|
|
|
(1,290
|
)
|
|
|
(1,114
|
)
|
|
Other
|
|
|
(228
|
)
|
|
|
(247
|
)
|
|
|
(230
|
)
|
|
Unrecognized tax benefit liability, December 31 (2)
|
|
$
|
4,645
|
|
|
$
|
4,357
|
|
|
$
|
4,755
|
|
|
(1)
|
Excludes accrued interest and penalties of $0.8 million, $1.1 million and $1.2 million at January 1, 2017, 2016 and 2015, respectively.
|
|
(2)
|
Excludes accrued interest and penalties of $0.6 million, $0.8 million and $1.1 million at December 31, 2017, 2016 and 2015, respectively. Amount presented is net of state net operating losses of $0.1 million, $0.3 million and $0.6 million at December 31, 2017, 2016 and 2015, respectively.
|
|