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Income Taxes
6 Months Ended
Jun. 30, 2018
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
Income tax expense was $2.1 million and $3.0 million on pre-tax income from continuing operations of $14.3 million and $19.8 million for the three and six months ended June 30, 2018, respectively, as compared to income tax benefit of $1.6 million on pre-tax loss from continuing operations of $6.1 million and income tax expense of $0.1 million on pre-tax loss from continuing operations of $14.6 million in the comparable prior year periods. The effective income tax rates for the three and six months ended June 30, 2018 were 14.7% and 15.2%, respectively, compared to 26.2% and (0.7)% in the comparable prior year periods.
The effective tax rates for the three and six months ended June 30, 2018 varied from the effective tax rates for the three and six months ended July 1, 2017 primarily due to losses incurred in the United States for which we have recognized a tax benefit in 2018.
On December 22, 2017, the U.S. government enacted the Tax Act, which significantly revised the U.S. corporate income tax regime by, among other things, lowering the U.S. corporate tax rate from 35% to 21%, limiting various business deductions and repealing the corporate alternative minimum tax. Many provisions in the Tax Act are generally effective in tax years beginning after December 31, 2017. GAAP requires the impact of tax legislation to be recognized in the period in which the law was enacted. As a result of the Tax Act, the Company recorded tax benefits in the fourth quarter of 2017 of $32.2 million due to a re-measurement of the U.S deferred tax assets and liabilities and $1.3 million due to the repeal of the corporate alternative minimum tax. The tax benefits represent provisional amounts and our current best estimates. We have not made adjustments to our provisional estimate during the first half of 2018. The provisional amounts incorporate assumptions made based upon our current interpretation of the Tax Act and in accordance with SAB 118 may be refined through the fourth quarter of 2018 as we receive additional clarification and implementation guidance. As we finalize the accounting for the tax effects of the enactment of the Tax Act during the measurement period, we will reflect adjustments to the provisional amounts recorded and record additional tax effects in the periods such adjustments are identified.