Note 13 - Income Taxes

The components of (loss) income from continuing operations before income taxes for the periods indicated were as follows (in millions):



	For the Years Ended December 31,
	2015			2014		2013
Domestic	$	(26.5	)	$	171.4	$	233.4
Foreign	(41.2		)	27.0		6.8
Total	$	(67.7	)	$	198.4	$	240.2

The provision for income taxes from continuing operations for the periods indicated were as follows (in millions):



	For the Years Ended December 31,
	2015			2014		2013
Current:
Federal	$	(4.5	)	$	47.3	$	77.0
Foreign	9.4			3.9		1.7
State and local	3.3			6.6		10.9
	$	8.2		$	57.8	$	89.6
Deferred:
Federal	$	25.7		$	14.9	$	0.5
Foreign	(19.9		)	2.7		(1.5		)
State and local	(2.0		)	1.0		3.9
	$	3.8		$	18.6	$	2.9
Provision for income taxes	$	12.0		$	76.4	$	92.5

The benefit from income taxes from discontinued operations for the year ended December 31, 2014 totaled $4.3 million.

The tax effects of significant items comprising the Company’s net deferred tax liability as of the dates indicated were as follows (in millions):



	December 31,
	2015			2014
Deferred tax assets:
Accrued self-insurance	$	27.7		$	26.0
Operating loss carryforwards	29.9			17.8
Compensation and benefits	17.7			20.7
Bad debt	3.1			5.0
Other	13.1			15.9
Valuation allowance	(0.3		)	(0.2		)
Total deferred tax assets	$	91.2		$	85.2
Deferred tax liabilities:
Property and equipment	$	118.9		$	114.3
Goodwill	57.7			47.5
Other intangible assets	37.8			44.0
Gain on remeasurement of equity investee	11.2			11.2
Long-term contracts	18.8			28.7
Other	16.4			11.3
Total deferred tax liabilities	$	260.8		$	257.0
Net deferred tax liabilities	$	(169.6	)	$	(171.8	)

Total net current and long-term deferred tax balances included in the Company’s consolidated balance sheets as of the dates indicated were as follows (in millions):



	December 31,
	2015			2014
Current deferred tax assets, net	$	19.2		$	31.7
Long-term deferred tax liabilities, net	(188.8		)	(203.5		)
Net deferred tax liabilities	$	(169.6	)	$	(171.8	)

In assessing the ability to realize the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which these temporary differences become deductible. Management considers the projected future taxable income and prudent and feasible tax planning strategies in making this assessment. The Company’s valuation allowances as of December 31, 2015 and 2014 are related primarily to state and foreign net operating loss carryforwards. The Company’s state net operating loss carryforwards, which may be carried forward between 5 and 20 years depending on the jurisdiction, totaled approximately $9.6 million and $5.0 million as of December 31, 2015 and 2014, respectively. The Company’s foreign net operating loss carryforwards, which are primarily related to the Company’s Canadian operations, totaled approximately $16.5 million and $12.8 million as of December 31, 2015 and 2014, respectively. These foreign net operating loss carryforwards begin to expire in 2033. The Company’s federal net operating loss carryforwards, which begin to expire in 2022, totaled $3.8 million as of December 31, 2015, and an immaterial amount as of December 31, 2014.

As of December 31, 2015, the Company has not made a provision for U.S. income taxes on unremitted foreign earnings because such earnings, which generally become subject to U.S. taxation upon remittance of dividends and certain other circumstances, are considered to be insignificant and are intended to be indefinitely reinvested outside the United States. The Company expects that domestic cash resources will be sufficient to fund its domestic operations and cash commitments in the future.

A reconciliation of the U.S. statutory federal income tax rate related to pretax income from continuing operations to the effective tax rate for the periods indicated is as follows:



	For the Years Ended December 31,
	2015		2014		2013
U.S. statutory federal rate applied to pretax income	35.0	%	35.0	%	35.0	%
State and local income taxes, net of federal benefit	(1.0	)	3.7		4.0
Foreign tax rate differential	(14.4	)	(1.3	)	(0.4	)
Non-deductible expenses	(13.5	)	3.4		2.4
Goodwill and intangible asset impairment	(17.7	)	0.0		0.0
Change in state tax rate	(3.6	)	(0.7	)	1.2
Domestic production activities deduction	(1.0	)	(1.6	)	(2.5	)
Other	(1.4	)	(0.1	)	(0.8	)
Valuation allowance for deferred tax assets	0.0		0.1		(0.4	)
Effective income tax rate	(17.6	)%	38.5	%	38.5	%

An entity may only recognize or continue to recognize tax positions that meet a “more likely than not” threshold. In the ordinary course of business, there is inherent uncertainty in quantifying income tax positions. The Company assesses its income tax positions and records tax benefits for all years subject to examination based on management’s evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where it is more likely than not that a tax benefit will be sustained, the Company has recognized the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the Company’s financial statements. Management believes that the Company has not taken material tax positions that would be deemed to be “uncertain,” therefore, the Company has not established a liability for uncertain positions for the years ended December 31, 2015 or 2014.

The IRS completed its examinations of the Company’s federal income tax returns for the calendar years 2012 and 2013. As a result, the Company received a refund totaling approximately $3.5 million relating primarily to the timing of certain deductions relating to the Company’s fixed assets. Certain state taxing authorities are examining various years. The final outcome of these examinations is not yet determinable. With few exceptions, as of December 31, 2015, the Company is no longer subject to U.S. federal or state examinations by taxing authorities for years before 2012.