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Income Taxes | 3 Months Ended
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Mar. 31, 2018
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] |
12. | INCOME TAXES
Tax Provision for the Three Months Ended March 31, 2018 and 2017 We are required to adjust our effective tax rate each quarter based on our estimated annual effective tax rate. We must also record the tax impact of certain discrete, unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, in the interim period in which they occur. In addition, jurisdictions with a projected loss for the year or a year-to-date loss where no tax benefit can be recognized are excluded from the estimated annual effective tax rate. The impact of such an exclusion could result in a higher or lower effective tax rate during a particular quarter, based upon the mix and timing of actual earnings versus annual projections. Income tax expense was $17.9 million for the three months ended March 31, 2018 as compared to $7.5 million for the three months ended March 31, 2017. Our effective income tax rate was 16.7% in the first quarter of 2018 as compared to 8.7% in the first quarter of 2017. The changes in income tax expense and effective income tax rate for the three months ended March 31, 2018, as compared to the three months ended March 31, 2017, were the result of 1) a benefit recognized in the first quarter of 2017 in the U.S. as a result of an increase in forecasted annual interest expense attributable to the first quarter of 2017 resulting from the issuance of certain notes; and 2) a decrease in the proportionate share of income attributable to lower tax rate jurisdictions due primarily to the decrease in the U.S. statutory tax rate. These factors were partially offset by 1) the reduction in U.S. statutory tax rate as a result of the enactment of the 2017 Act; and 2) a benefit related to additional U.S. tax credits. In comparison to the U.S. statutory rate, our income tax expense and effective income tax rate for the three months ended March 31, 2018 reflect the benefit associated with the additional U.S. tax credits, as well as the impact of favorable foreign tax rates. Based on the protocol of finalizing audits and advance pricing agreements with the relevant tax authorities, it is not possible to estimate the timing or impact of changes, if any, to previously recorded uncertain tax positions. As of March 31, 2018 and December 31, 2017, we have recorded a liability for unrecognized income tax benefits and related interest and penalties of $55.4 million and $55.2 million, respectively. In 2018, we may finalize advance pricing agreements in a foreign jurisdiction, which could result in cash payments to the relevant tax authorities and a reduction of our liability for unrecognized tax benefits and related interest and penalties. We do not expect the settlements will be materially different from what we have recorded in unrecognized tax benefits. We will continue to monitor the progress and conclusions of current and future audits and other communications with tax authorities and will adjust our estimated liability as necessary. Tax Cuts and Jobs Act On December 22, 2017, the Tax Cuts and Jobs Act (the 2017 Act) was enacted in the United States. The following is a summary of the key provisions of the 2017 Act: •Reduces the U.S. federal statutory income tax rate for corporations from 35% to 21%
• | Requires companies to pay a one-time transition tax (Transition Tax) on certain foreign earnings for which U.S. income tax was previously deferred
• | Generally eliminates U.S. federal income taxes on dividends from foreign subsidiaries
• | Requires a current inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations (GILTI)
• | Eliminates the corporate alternative minimum tax (AMT) and changes how existing AMT credits can be realized
• | Creates a new limitation on deductible net interest expense incurred by U.S. corporations
• | Allows for immediate expensing of certain capital investments in the U.S. for the period September 27, 2017 through December 31, 2022
• | Creates a new base erosion anti-abuse minimum tax (BEAT)
• | Allows for a current deduction for a portion of foreign derived intangible income (FDII)
Following the enactment of the 2017 Act, the Securities and Exchange Commission issued Staff Accounting Bulletin (SAB) 118 to provide guidance on the accounting and reporting impacts of the 2017 Act. For the impact of changes resulting from the 2017 Act, under the guidance in SAB 118, we either 1) recorded an estimated provisional amount when the impact of the change could be reasonably estimated; or 2) continued to apply the accounting guidance that was in effect immediately prior to the 2017 Act when the impact of the change could not be reasonably estimated. For estimated provisional amounts recorded, there is a measurement period of no longer than one year during which we should adjust those amounts as additional information becomes available. In connection with our preliminary analysis of the impacts of the 2017 Act, we recorded estimates in 2017 related to the remeasurement of our net deferred tax liabilities as a result of the change in tax rate, a reduction of a previously recorded deferred tax liability on certain foreign earnings, and estimated expense related to the Transition Tax. These estimates were based on information available at the time and, in accordance with the guidance in SAB 118, we designated these amounts as provisional. As such, these amounts are subject to adjustment as we obtain additional information and complete our analysis. The additional information required is as follows: Reduction of U.S. federal corporate tax rate: While we were able to make a reasonable estimate in 2017 of the impact of the reduction in the corporate tax rate, the final impact may be affected by other elements related to the 2017 Act including, but not limited to, our calculation of deemed repatriation of deferred foreign income and the state tax effect of adjustments made to federal temporary differences. Transition Tax: In order to finalize the impact of the Transition Tax, we must determine, in addition to other factors, the amount of earnings of certain foreign subsidiaries, as well as the amount of non-U.S. income taxes paid on these earnings. In 2017, we were able to make a reasonable estimate, however, we are continuing to gather information to more precisely calculate the Transition Tax. For the three months ended March 31, 2018, we did not record any adjustments to these provisional amounts as we did not obtain sufficient information to adjust the estimates previously recorded.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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