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84
Note 11: Income Taxes From Continuing Operations
Components of Income Taxes
The components of income from continuing operations before income taxes were as follows:
Year Ended December 31,
Dollars in thousands 2014 2013 2012
U.S. operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 186,976 $ 258,665 $ 262,695
Foreign operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (19,842)(16,097)(4,302)
Total income from continuing operations before income taxes . . . $ 167,134 $ 242,568 $ 258,393
Components of Income Tax Expense
The components of income tax expense from continuing operations were as follows:
Year Ended December 31,
Dollars in thousands 2014 2013 2012
Current:
U.S. Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 69,561 $ 39,272 $ —
State and local . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,383 10,159 4,142
Foreign. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 415 (424)7
Total current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82,359 49,007 4,149
Deferred:
U.S. Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (17,167)(4,169) 87,375
State and local . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241 (5,726) 7,938
Foreign. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,685)(4,635)(1,521)
Total deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (22,611)(14,530) 93,792
Total income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 59,748 $ 34,477 $ 97,941
Rate Reconciliation
The income tax expense differs from the amount that would result by applying the U.S. statutory rate to income before income
taxes as follows:
Year Ended December 31,
2014 2013 2012
U.S Federal tax expense at statutory rates . . . . . . . . . . . . . . . . . . . . . . . 35.0% 35.0% 35.0%
State income taxes, net of federal benefit . . . . . . . . . . . . . . . . . . . . 4.6 4.2 4.0
Federal and state credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.2)(0.9)(0.8)
Domestic production activities deduction . . . . . . . . . . . . . . . . . . . . (4.1)(0.6)—
Recognition of outside basis differences. . . . . . . . . . . . . . . . . . . . . (1.2)(16.7)—
ecoATM option payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.6 0.7 —
Valuation allowance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 2.4 —
Acquisition of ecoATM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (10.0)—
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.0 0.1 (0.3)
Effective tax rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.7% 14.2% 37.9%
Our effective tax rate for the year ended December 31, 2014 was higher than the U.S. Federal statutory rate of 35.0% due
primarily to state income taxes, offset partially by the Domestic Production Activities Deduction, which we are entitled to based
on our domestic production activities.