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INCOME TAXES | 9 Months Ended
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Sep. 30, 2017
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES Uncertain Tax Benefits As of September 30, 2017, we had gross unrecognized tax benefits of $32.6 (net unrecognized tax benefits of $21.2). Of these net unrecognized tax benefits, $16.3 would impact our effective tax rate from continuing operations if recognized. We classify interest and penalties related to unrecognized tax benefits as a component of our income tax provision. As of September 30, 2017, gross accrued interest totaled $4.2 (net accrued interest of $2.8). As of September 30, 2017, we had no accrual for penalties included in our unrecognized tax benefits. Based on the outcome of certain examinations or as a result of the expiration of statutes of limitations for certain jurisdictions, we believe that within the next 12 months it is reasonably possible that our previously unrecognized tax benefits could decrease up to $4.0. The previously unrecognized tax benefits relate to a variety of tax matters relating to deemed income inclusions, transfer pricing and various state matters. Other Tax Matters For the three months ended September 30, 2017, we recorded an income tax provision of $4.8 on $26.8 of pre-tax income from continuing operations, resulting in an effective tax rate of 17.9%. This compares to an income tax provision for the three months ended October 1, 2016 of $0.5 on $7.1 of pre-tax income from continuing operations, resulting in an effective tax rate of 7.0%. The most significant items impacting the income tax provision for the third quarter of 2017 were (i) $5.0 of foreign losses generated during the period for which no tax benefit was recognized, as future realization of any such tax benefit is considered unlikely, and (ii) $4.1 of tax benefits related to various audit settlements, statute expirations, and other adjustments to liabilities for uncertain tax positions. The most significant items impacting the income tax provision for the third quarter of 2016 were the $1.7 of additional gain that was recorded during the quarter on the sale of the dry cooling business, for which no income taxes were provided, and $0.7 of tax benefits related to various audit settlements, statute expirations, and other adjustments to liabilities for uncertain tax positions. For the nine months ended September 30, 2017, we recorded an income tax provision of $14.0 on $38.0 of pre-tax income from continuing operations, resulting in an effective tax rate of 36.8%. This compares to an income tax provision for the nine months ended October 1, 2016 of $10.1 on $43.4 of pre-tax income from continuing operations, resulting in an effective tax rate of 23.3%. The most significant items impacting the income tax provision for the first nine months of 2017 were (i) $34.6 of foreign losses generated during the period for which no benefit was recognized, as future realization of any such tax benefit is considered unlikely, and (ii) $4.1 of tax benefits related to various audit settlements, statute expirations, and other adjustments to liabilities for uncertain tax positions. The most significant items impacting the income tax provision for the first nine months of 2016 were (i) $0.3 of income taxes that were provided in connection with the $18.4 gain that was recorded on the sale of the dry cooling business and (ii) $10.5 of foreign losses generated during the period for which no tax benefit was recognized, as future realization of any such tax benefit is considered unlikely. We perform reviews of our income tax positions on a continuous basis and accrue for potential uncertain positions when we determine that an uncertain position meets the criteria of the Income Taxes Topic of the Codification. Accruals for these uncertain tax positions are recorded in “Income taxes payable” and “Deferred and other income taxes” in the accompanying condensed consolidated balance sheets based on the expectation as to the timing of when the matters will be resolved. As events change and resolutions occur, these accruals are adjusted, such as in the case of audit settlements with taxing authorities. We have filed our federal income tax returns for the 2014, 2015 and 2016 tax years and those returns are subject to examination. With regard to all open tax years, we believe any contingencies are adequately provided for. State income tax returns generally are subject to examination for a period of three to five years after filing the respective tax returns. The impact on such tax returns of any federal changes remains subject to examination by various states for a period of up to one year after formal notification to the states. We have various state income tax returns in the process of examination. We believe any uncertain tax positions related to these examinations have been adequately provided for. We have various foreign income tax returns under examination. The most significant of these are in Germany for the 2010 through 2014 tax years. We believe that any uncertain tax positions related to these examinations have been adequately provided for. An unfavorable resolution of one or more of the above matters could have a material adverse effect on our results of operations or cash flows in the quarter and year in which an adjustment is recorded or the tax is due or paid. As audits and examinations are still in process, the timing of the ultimate resolution and any payments that may be required for the above matters cannot be determined at this time.

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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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