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Income Tax
9 Months Ended
Sep. 30, 2016
Income Tax Disclosure [Abstract]  
Income Tax
Income Tax
The Company recorded an income tax expense of $0.7 million and $1.5 million despite a pre-tax loss of $0.5 million and $12.6 million for the three and nine months ended September 30, 2016, respectively, and recorded an income tax expense of $0.4 million and $1.2 million despite a pre-tax loss of $6.1 million and $23.2 million for the three and nine months ended September 30, 2015, respectively, primarily because the income tax benefit related to the U.S. pre-tax loss generated was subject to a valuation allowance. In addition, certain foreign jurisdictions generated pre-tax income that resulted in tax expense.
The Company is routinely under audit by federal, state, local and foreign tax authorities in the area of income tax. These audits include questioning the timing and the amount of income and deductions and the allocation of income and deductions among various tax jurisdictions. The Internal Revenue Service recently completed an audit of the Company’s federal tax returns for the years ended December 31, 2010 and 2011. Various other jurisdictions are open to examination for various tax years. Management believes it has adequately provided for all uncertain tax positions and any potential audit adjustments would not have a material impact on the Company’s liquidity, results of operations or financial condition.
Unrecognized tax benefits totaled $6.8 million and $5.5 million at September 30, 2016 and December 31, 2015, respectively. Management does not expect that the balance of unrecognized tax benefits will significantly increase or decrease over the next twelve months. If unrecognized tax benefits at September 30, 2016 are subsequently recognized, the Company's income tax expense would be reduced by $5.7 million ($0.7 million net of the impact of the Company’s valuation allowance).