Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Components of Provision (Benefit) for Income Taxes

The provision (benefit) for income taxes from continuing operations consists of (in thousands):

	For the years ended December 31,
	2016			2015			2014
Current:
U.S. federal	$	101,443		$	106,700		$	709
U.S. state and local	(2,245		)	19,665			4,081
Non U.S.	471			958			(828		)
	$	99,669		$	127,323		$	3,962
Deferred:
U.S. federal	$	32,635		25,221			30,331
U.S. state and local	13,673			(16,803		)	(10,997		)
Non U.S.	(5,246		)	(4,883		)	(543		)
	$	41,062		$	3,535		$	18,791
Provision for income taxes	$	140,731		$	130,858		$	22,753

Income Tax Rate Reconciliation

The following table reconciles the U.S. federal statutory income tax to the Company's actual income tax from continuing operations (in thousands):

	For the years ended December 31,
	2016			2015			2014
U.S. federal income tax expense at statutory rate	$	138,750		$	132,987		$	29,815
U.S. state and local income tax expense (benefit), net of U.S. federal income tax effect	7,428			18,101			(4,495		)
Recognition of state deferred tax assets and net operating losses, net of U.S. federal income tax effect	—			(16,242		)	—
Nondeductible expenses (1)	2,980			3,223			230
Federal research & development tax credits	(2,153		)	(3,753		)	(1,241		)
Deduction for domestic production activities	(5,525		)	—			—
Foreign taxes	471			(3,927		)	(1,371		)
Other, net	(1,220		)	469			(185		)
Income tax expense	$	140,731		$	130,858		$	22,753

⁽¹⁾ Nondeductible expenses include nondeductible compensation and meals and entertainment.

Components of Net Deferred Tax Assets

At December 31, 2016, and December 31, 2015, the Company’s net deferred tax assets were $109.9 million and $151.2 million, respectively, and comprised the following (in thousands):

	December 31, 2016			December 31, 2015
Deferred tax assets:
Employee compensation and benefit plans	$	32,719		$	41,447
Fixed assets and other amortizable assets	52,206			79,765
Accrued expenses and other	16,140			7,875
Valuation of investments	8,108			13,590
Net operating loss carryforwards and tax credits	42,476			43,419
Less: Valuation allowance on net operating loss carryforwards and tax credits	(9,715		)	(9,715		)
Total deferred tax assets	$	141,934		$	176,381
Deferred tax liabilities:
Fixed assets and other amortizable assets	$	2,191		$	243
Valuation of investments	—			280
Reduction in foreign tax credit for Non-U.S. NOL carryforwards	29,882			24,633
Total deferred tax liabilities	32,073			25,156
Net deferred tax assets	$	109,861		$	151,225

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

The following table reconciles the beginning and ending amount of unrecognized tax benefits (in thousands):

	December 31, 2016			December 31, 2015
Balance at beginning of period	$	3,644		$	2,312
Increases based on tax positions related to prior periods	1,751			1,332
Decreases based on tax positions related to prior periods	(1,217		)	—
Increases based on tax positions related to current periods	917			—
Balance at the end of the period	$	5,095		$	3,644