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Income Taxes | 9 Months Ended
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Sep. 30, 2018
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES The Company recognized income tax expense of $6.5 million and $7.5 million for the three months ended September 30, 2018 and 2017, respectively. The reduction in tax expense in the current-year quarter is largely due to the impact of the lower U.S. federal corporate tax rate following the enactment of the 2017 Tax Act and the absence of $0.6 million of discrete tax expense recognized in the prior-year quarter in connection with state tax rate changes, partially offset by higher pre-tax income levels. The Company’s effective tax rate for the three months ended September 30, 2018 was 23.0%, compared to 37.5% in the prior-year quarter, reflecting the lower U.S. federal corporate tax rate. For the nine months ended September 30, 2018 and 2017, the Company recognized income tax expense of $18.9 million and $17.4 million, respectively. The increase in tax expense in the current year is largely due to higher pre-tax income levels, offset by the impact of the lower U.S. federal corporate tax rate following the enactment of the 2017 Tax Act, the recognition of a $0.6 million excess tax benefit from stock compensation activity and the absence of $0.6 million of discrete tax expense recognized in the prior-year period in connection with state tax rate changes. The Company’s effective tax rate for the nine months ended September 30, 2018 was 23.5%, compared to 35.8% in the prior-year period, reflecting the lower U.S. federal corporate tax rate and the excess tax benefit. As discussed in Note 1 – Summary of Significant Accounting Policies, the condensed consolidated financial statements for the three and nine months ended September 30, 2018 include the Company’s provisional estimates of the impact of the 2017 Tax Act, in accordance with SAB 118. The Company may adjust the provisional amounts throughout the measurement period as the Company’s calculations are refined and additional interpretive guidance becomes available. During the three and nine months ended September 30, 2018, there have been no significant adjustments to the provisional amounts recorded at December 31, 2017. Effective January 1, 2018, the 2017 Tax Act subjects a U.S. entity to tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. Given the complexity of the GILTI provisions, the Company is continuing to evaluate the effects of the GILTI provisions and has not yet determined its related accounting policy. As of September 30, 2018, the Company has included a provisional estimate of the GILTI related to current-year operations in its estimated annual effective tax rate. The 2017 Tax Act also provides a one-time “transition tax” on untaxed post-1986 accumulated earnings and profits (“E&P”) of a company’s controlled foreign corporations (“CFCs”) determined as of November 2, 2017 or December 31, 2017 (whichever date on which there is more deferred E&P). Cash and cash equivalents are taxed at an effective rate of 15.5% and earnings in excess of the cash position are taxed at an effective rate of 8%. The 2017 Tax Act permits the netting of positive earnings of one CFC against deficits of others. At both November 2, 2017 and December 31, 2017, the accumulated undistributed earnings of the Company’s foreign subsidiaries aggregated to an overall E&P deficit. Therefore, the Company estimates that no transition tax will be payable under the provisions of the 2017 Tax Act. As with other tax calculations surrounding the 2017 Tax Act, the Company’s estimate of its transition tax liability as of September 30, 2018 is provisional due to complexities inherent in the computations that it expects to be addressed in whole, or in part, by regulations issued during 2018.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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