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10. Income Taxes
6 Months Ended
Jun. 30, 2017
Income Tax Disclosure [Abstract]  
Income Taxes 10.    INCOME TAXES
 
Our effective income tax rate was (350)% and 33% for the three months ended June 30, 2017 and 2016, respectively. Our effective income tax rate was 18% and 36% for the first half of 2017 and 2016, respectively. The effective tax rate for the second quarter of 2017 was unusually low because of discrete tax benefits related to share-based compensation and the transfer of intangibles associated with our European reorganization, combined with low earnings before tax. The effective tax rate for the first half of 2017 was lower primarily due to the second quarter discrete tax benefits.
  
Our foreign taxes result primarily from income earned in France and Switzerland. Many jurisdictions in which we operate including Switzerland and Singapore have statutory tax rates that are significantly lower than the U.S. statutory tax rate of 35%.

Our income tax returns are audited by U.S. federal, state and foreign tax authorities. We are currently under examination by many of these tax authorities. There are differing interpretations of tax laws and regulations, and as a result, significant disputes may arise with these tax authorities involving issues of the timing and amount of deductions and allocations of income among various tax jurisdictions. We evaluate our exposures associated with our tax filing positions on a quarterly basis.

We record liabilities for unrecognized tax benefits related to uncertain tax positions. We do not believe any currently pending uncertain tax positions will have a material adverse effect on our condensed consolidated financial statements, although an adverse resolution of one or more of these uncertain tax positions in any period may have a material impact on the results of operations for that period.

As of June 30, 2017, based on the expected outcome of certain examinations or as a result of the expiration of statute 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 by approximately $3.5 million. Substantially all such amounts will favorably impact our effective income tax rate.