Napa Auto Parts 2015 Annual Report Download - page 63

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Genuine Parts Company and Subsidiaries
Notes to Consolidated Financial Statements — (Continued)
December 31, 2015
The components of income tax expense are as follows:
2015 2014 2013
(In Thousands)
Current:
Federal ........................................... $309,403 $224,591 $303,016
State ............................................. 45,460 43,513 47,010
Foreign ........................................... 27,602 84,030 30,941
Deferred ............................................ 35,544 54,319 (21,622)
$418,009 $406,453 $359,345
The reasons for the difference between total tax expense and the amount computed by applying the statutory
Federal income tax rate to income before income taxes are as follows:
2015 2014 2013
(In Thousands)
Statutory rate applied to income ......................... $393,288 $391,209 $365,506
Plus state income taxes, net of Federal tax benefit ........... 32,295 32,646 28,823
Earnings in jurisdictions taxed at rates different from the
statutory US tax rate ................................. (13,684) (3,453) (37,873)
Foreign tax credit ..................................... (264) (20,170) —
Capital loss expiration ................................. —— 16,803
Reversal of capital loss valuation allowance ................ —— (16,803)
Other ............................................... 6,374 6,221 2,889
$418,009 $406,453 $359,345
The Company, or one of its subsidiaries, files income tax returns in the U.S. federal jurisdiction, various
states, and foreign jurisdictions. With few exceptions, the Company is no longer subject to federal, state and local
tax examinations by tax authorities for years before 2009 or subject to non-United States income tax examina-
tions for years ended prior to 2008. The Company is currently under audit in the United States and Canada. Some
audits may conclude in the next twelve months and the unrecognized tax benefits recorded in relation to the
audits may differ from actual settlement amounts. It is not possible to estimate the effect, if any, of the amount of
such change during the next twelve months to previously recorded uncertain tax positions in connection with the
audits. However, the Company does not anticipate total unrecognized tax benefits will significantly change dur-
ing the year due to the settlement of audits and the expiration of statutes of limitations.
A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:
2015 2014 2013
(In Thousands)
Balance at beginning of year ............................... $17,581 $ 47,190 $45,455
Additions based on tax positions related to the current year ...... 1,969 3,303 3,238
Additions for tax positions of prior years ..................... 61 6,415 3,759
Reductions for tax positions for prior years ................... (3,152) (851) (1,472)
Reduction for lapse in statute of limitations ................... (425) (481) (1,714)
Settlements ............................................ (219) (37,995) (2,076)
Balance at end of year .................................... $15,815 $ 17,581 $47,190
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