XML 22 R11.htm IDEA: XBRL DOCUMENT v3.8.0.1
Income Taxes
3 Months Ended
Mar. 31, 2018
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The Company's provision for income taxes is based upon an estimated annual tax rate for the year applied to federal, state and foreign income. On a quarterly basis, the annual effective tax rate is adjusted, as appropriate, based upon changed facts and circumstances, if any, as compared to those forecasted at the beginning of the fiscal year and each interim period thereafter.

At March 31, 2018, the Company's effective tax rate for the first quarter was 28.6%. This rate includes income tax expenses of $0.9 million and $0.4 million related to a commercial settlement gain and other one-time tax adjustments, and reductions of income tax expense of $0.6 million and $0.3 million million which are associated with restructuring expense, and merger and acquisition expense.

At March 31, 2017, the Company's effective tax rate for the first quarter was 30.2%. This rate includes tax expense of $3.4 million related to one-time adjustments.

The annual effective tax rates differ from the U.S. statutory rate primarily due to foreign rates which differ from those in the U.S., U.S. taxes on foreign earnings, the realization of certain business tax credits, including foreign tax credits, and favorable permanent differences between book and tax treatment for certain items, including equity in affiliates' earnings.

In accordance with guidance provided by Staff Accounting Bulletin No 118 (SAB 118), we have not completed our accounting for the tax effects of the Tax Cuts and Jobs Act of 2017 (the "Act") and have recorded provisional estimates for significant items including the following: (i) the effects on our existing deferred balances, (ii) the one-time transition tax, and (iii) our indefinite reinvestment assertion.  The measurement period begins in the reporting period that includes the Act’s enactment date and ends when the additional information is obtained, prepared, or analyzed to complete the accounting requirements under ASC Topic 740.  The measurement period should not extend beyond one year from the enactment date.  As of March 31, 2018, the Company continues to evaluate the provisional amounts recorded for the year ended December 31, 2017 and have recorded no adjustments.

We have made an accounting policy election to treat the future tax impacts of the global intangible low-tax income (GILTI) provisions of the Act as a period cost to the extent applicable.