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Income Taxes
6 Months Ended
Jun. 30, 2017
Income Tax Disclosure [Abstract]  
Income Taxes

11. Income Taxes

The Company's tax provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items.

 

For the three and six months ended June 30, 2017, the Company recorded income tax expense of $4.5 million and $0.1 million on pre-tax income of $9.6 million and pre-tax loss of $183.4 million, for an effective tax rate of 46.8% and (0.1%), respectively. For the three and six months ended June 30, 2016, the Company recorded income tax expense of $7.8 million and $17.8 million on pre-tax income of $20.8 million and $47.3 million, for an effective tax rate of 37.8% and 37.7%, respectively. In the three and six months ended June 30, 2017, the Company adopted ASU 2016-09 which resulted in $0.5 million and $0.8 million, respectively, of incremental tax expense recognized due to excess tax deficiencies of vested or settled awards in the period. The adoption of the standard was applied prospectively in accordance with guidance.

 

The Company’s U.S. statutory rate is 35.0%. The most significant factor impacting the effective tax rate for the six months ended June 30, 2017 was the discrete impact of the goodwill impairment charges. There were no significant discrete items impacting the effective tax rate for the six months ended June 30, 2016.