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Income Taxes
9 Months Ended
Sep. 30, 2017
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The Company maintains income tax valuation allowances on its U.S. Federal and state deferred tax assets due to a three year cumulative loss condition, which limits the ability to consider other positive subjective evidence, such as projections of future results, to assess the realizability of deferred tax assets. Results in both 2017 and 2016 include impacts from income taxes that differ from a standard 35% tax rate, primarily related to income tax valuation allowance changes. Third quarter 2017 results included a benefit for income taxes of $1.9 million, which includes the impact of $106 million pre-tax non-deductible goodwill impairment and $0.3 million of discrete tax benefits. The third quarter 2016 benefit for income taxes was $4.3 million, which includes a $173.1 million income tax valuation allowance charge on U.S. federal deferred tax assets, and $4.1 million of discrete charges. The third quarter 2016 actions to indefinitely idle the Rowley, UT titanium sponge production facility resulted in a reassessment of the realizability of U.S. federal deferred tax assets.
For the first nine months of 2017, the benefit for income taxes was $2.0 million, compared to a benefit for income taxes of $64.4 million, or 9.1% of the loss before income taxes, for the comparable 2016 period. The first nine months of 2017 included discrete tax benefits of $7.0 million, largely for the effects of amending tax returns for prior periods in certain domestic jurisdictions, and the first nine months of 2016 included discrete tax expense of $0.5 million.
For the three and nine months ended September 30, 2017, the Company determined that it was unable to make a reliable estimate of the annual effective tax rate for the Company's domestic operations, as insignificant changes in projected results for these operations can produce a significant variation in its annual effective tax rate. Therefore, the Company recorded tax expense for these operations for the three and nine months ended September 30, 2017 based on the actual year to date effective rate for these periods.