Income Taxes (Tables)

6 Months Ended

Jun. 30, 2018

Note 15 - Income Taxes

The Company's provision for income taxes in interim periods is computed by applying the estimated annual effective tax rates to income or loss before income taxes for the period. In addition, non-recurring or discrete items are recorded during the period(s) in which they occur.



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Provision (benefit) for income taxes	$	30.2		$	(8.1	)	$	58.5		$	7.4
Effective tax rate	24.7		%	(11.0		)%	25.3		%	5.8		%

The income tax expense for the three and six months ended June 30, 2018 was calculated using the forecasted multi-jurisdictional annual effective tax rates to determine a blended annual effective tax rate. The effective tax rate differs from the U.S. federal statutory rate of 21% primarily due to the projected mix of earnings in international jurisdictions with relatively higher tax rates, losses in jurisdictions with no tax benefit due to valuation allowances and U.S. state and local income taxes.

The effective tax rate of 24.7% for the three months ended June 30, 2018 is higher than the three months ended June 30, 2017 primarily due to the 2017 reversal of accruals for uncertain tax positions (including related interest) based on the expiration of various statutes of limitation.

The effective tax rate of 25.3% for the six months ended June 30, 2018 is higher than the six months ended June 30, 2017 primarily due to the reversal of accruals for uncertain tax positions, partially offset by the net benefits of U.S. Tax Reform, which reduced the statutory rate from 35% to 21% on U.S. earnings beginning in 2018.

U.S. Tax Reform was enacted on December 22, 2017 and reduced the U.S. federal corporate rate from 35% to 21%. It requires companies to pay a one-time net charge related to the taxation of unremitted foreign earnings and creates new taxes, including a tax on certain foreign sourced earnings known as the global intangible low-taxed income (“GILTI”) tax. Also on December 22, 2017, SEC Staff Accounting Bulletin No. 118 (“SAB 118”) was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of U.S. Tax Reform. In accordance with SAB 118, the accounting for the tax effects of U.S. Tax Reform is not complete as of June 30, 2018; however, reasonable estimates have been made.

Provisional estimates of $25.2 million for the one-time net charge related to the taxation of unremitted foreign earnings and $10.1 million related to the remeasurement of U.S. deferred tax balances to reflect the new U.S. corporate income tax rate were recognized as components of income tax expense in the year ended December 31, 2017. Reasonable estimates have also been made for the effects of other provisions of U.S. Tax Reform, but they do not have a material impact on the Company's consolidated financial statements. Changes totaling a benefit of $2.8 million have been made to these provisional estimates during the six months ended June 30, 2018 as a result of additional federal and state regulatory guidance issued and for adjustments to finalize the purchase accounting for Groeneveld. Additional information and evaluation of U.S. Tax Reform is still needed to prepare a more detailed analysis of the Company’s deferred tax assets and liabilities, as well as historical foreign earnings and profits and potential correlative adjustments. Any subsequent adjustments to the Company's provisional estimates will be recorded to current tax expense in the quarter of 2018 when such further analysis is complete. These changes could be material to income tax expense.

A provisional estimate for the GILTI provisions was not recognized as a component of income tax expense in the year ended December 31, 2017 as the Company had not completed its assessment or made an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or to record it as a period cost if and when incurred. At June 30, 2018, given the complexity of the GILTI provisions, the Company is still evaluating the effects of the GILTI provisions and determining projections of future taxable income that is subject to the GILTI provisions. The Company has included GILTI related to current-year operations only in the forecasted annual effective tax rate and has not provided additional GILTI as a deferred amount.

No additional income tax provision has been made on any remaining undistributed foreign earnings not subject to the one-time net charge related to the taxation of unremitted foreign earnings or any additional outside basis difference as these amounts continue to be indefinitely reinvested in foreign operations. The Company is still evaluating whether to change its indefinite reinvestment assertion in light of U.S. Tax Reform and considers this conclusion to be incomplete. If the Company subsequently changes its assertion, it will account for the change in the quarter when the analysis is complete.

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Provision (benefit) for income taxes	$	30.2		$	(8.1	)	$	58.5		$	7.4
Effective tax rate	24.7		%	(11.0		)%	25.3		%	5.8		%