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Income Taxes
3 Months Ended
Mar. 31, 2017
Income Taxes [Abstract]  
Income Taxes

(11)  Income Taxes

The consolidated income tax expense for the three months ended March 31, 2017 and 2016, was determined based upon estimates of the Company’s consolidated effective income tax rates for the years ending December 31, 2017 and 2016, respectively. The difference between the consolidated effective income tax rate and the U.S. federal statutory rate is primarily attributable to foreign income taxes, state income taxes and the effect of certain permanent differences.

The Company’s estimated full year effective tax rate, before certain non-recurring discrete items, was 6.0% at March 31, 2017, compared to 13.6% at March 31, 2016. The lower estimated full year effective tax rate at March 31, 2017 was due to an increase in the proportion of pretax income generated in lower tax jurisdictions.

CAI INTERNATIONAL, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)



The Company accounts for uncertain tax positions based on an evaluation as to whether it is more likely than not that a position will be sustained on audit, including resolution of any related appeals or litigation processes. This evaluation is based on all available evidence and assumes that the appropriate tax authorities have full knowledge of all relevant information concerning the tax position. Once it has been determined that a tax position is more likely than not to be sustained on its technical merits, the tax benefit recognized is based on the largest amount that is greater than 50% likely of being realized upon ultimate settlement. As of March 31, 2017, the Company had unrecognized tax benefits of $0.2 million, which if recognized, would reduce the Company’s effective tax rate. Total accrued interest relating to unrecognized tax benefits was less than $0.1 million as of March 31, 2017. The Company does not believe the total amount of unrecognized tax benefits as of March 31, 2017 will change for the remainder of 2017.