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Income Taxes
6 Months Ended
Jun. 30, 2018
Income Tax Disclosure [Abstract]  
Income Taxes

12. 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, 2018, the Company recorded an income tax benefit of $0.1 million on pre-tax loss of ($0.2) million for an effective tax rate of 59.2% and income tax benefit of $15.4 million on pre-tax loss of ($66.9) million for an effective tax rate of 23.0%, respectively. For the three and six months ended June 30, 2017, the Company recorded income tax expense of $4.5 million on pre-tax income of $9.6 million, for an effective tax rate of 46.8% and income tax expense of $0.1 million on pre-tax loss of $(183.4) million for an effective tax rate of (0.1)%, respectively.

 

The Company’s U.S. federal statutory rate is 21.0%. The most significant factor impacting the effective tax rate for the three and six months ended June 30, 2018 and the three months ended June 30, 2017, was the discrete impact of equity compensation. 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.

 

The effective tax rate for the three and six months ended June 30, 2018, also reflects the reduced federal corporate income tax rate as a result of the enactment of the Tax Cuts and Jobs Act (the “Tax Act”) in December 2017. The Company continues to analyze the aspects of the Tax Act which could potentially affect the provisional estimates that were recorded in the year ended December 31, 2017.