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

Our effective tax rate was 30% for six months ended June 30, 2017, compared to 33% for six months ended June 30, 2016. The difference in the effective rates for the current year compared to prior year is primarily attributable to the mix of pretax income among domestic and foreign jurisdictions which are taxed at different rates. In addition, the 2017 effective tax rate reflects incremental benefits associated with equity awards in accordance with the adoption of new accounting rules and the impact of reductions in the statutory tax rates in Quebec and Saskatchewan, Canada and India, partially offset by an increase to the effective tax rate in Germany.

As of June 30, 2017, our gross liability for unrecognized tax benefits was $4.3 million. If fully recognized, these tax benefits would decrease our income tax expense by $4.3 million ($2.8 million, net of federal tax). Based upon the status of current state income tax audits and our expectation of the ultimate resolution, we believe that it is probable that we will recognize the full balance of our unrecognized tax benefits of $4.3 million ($2.8 million, net of federal tax) within the next 12 months.

On July 6, 2017, the state of Illinois passed new legislation increasing the corporate income tax rate from 5.25% to 7.00%, effective July 1, 2017. We are evaluating the impact of this change to our overall deferred tax liabilities and will record any required adjustment in the third quarter of the year.