XML 28 R18.htm IDEA: XBRL DOCUMENT v3.8.0.1
Income Taxes
9 Months Ended
Sep. 30, 2017
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
 
The Company’s effective tax rate was 24.2% and 29.7% for the quarters ended September 30, 2017 and 2016, and 24.0% and 31.5% for the nine months ended September 30, 2017 and 2016, respectively. The difference in the Company’s effective tax rate for the quarter ended September 30, 2017 compared to the quarter ended September 30, 2016 was primarily related to a net tax benefit of $1.4 million from the completion of a tax audit in the third quarter of 2017, partially offset by $0.4 million of tax expense related to a repatriation of foreign cash back into the United States. The difference in the Company's effective tax rate for the nine months ended September 30, 2017 compared to the nine months ended September 30, 2016 was primarily related to tax benefits from stock compensation of $1.7 million for the nine months ended September 30, 2017 compared to $0.4 million for the nine months ended September 30, 2016, the net tax benefit of $1.4 million in the third quarter of 2017 related to the completion of a tax audit and a more favorable mix of income in lower taxed jurisdictions during the nine months ended September 30, 2017.
The Company and its subsidiaries file a consolidated federal income tax return, as well as returns required by various state and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities, including such major jurisdictions as the United States, France, Germany, China, the United Kingdom, the Netherlands and Canada. With few exceptions, the Company is no longer subject to U.S. federal examinations for years before 2015, state and local examinations for years before 2012, and non-U.S. income tax examinations for years before 2003.
The Company’s effective tax rates in future periods could be affected by earnings being higher or lower in countries where tax rates differ from the United States federal tax rate, the relative impact of permanent tax adjustments on higher or lower earnings from domestic operations, changes in net deferred tax asset valuation allowances, stock vesting, the completion of acquisitions or divestitures, changes in tax rates or tax laws and the completion of tax projects and audits.