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Income Taxes | 12 Months Ended
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Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES (Loss) income before income taxes, non-controlling interests and dividends on preferred shares were as follows:
(amounts in millions) |  | For the year ended December 31, 2015 |  | For the year ended December 31, 2014 |  | For the period from inception (April 23, 2013) through December 31, 2013 |  |  | For the ten months ended October 31, 2013
|  | (Successor) |  | (Successor) |  | (Successor) |  |  | (Predecessor)
Domestic |  | $ | (290.8 | ) |  | $ | (103.9 | ) |  | $ | (7.9 | ) |  |  | $ | (74.2 | )
Foreign |  | 61.5 |  |  | 73.0 |  |  | (193.5 | ) |  |  | 100.7 |
Total |  | $ | (229.3 | ) |  | $ | (30.9 | ) |  | $ | (201.4 | ) |  |  | $ | 26.5 |
Income tax expense (benefit) consisted of the following:
(amounts in millions) |  | For the year ended December 31, 2015 |  | For the year ended December 31, 2014 |  | For the period from inception (April 23, 2013) through December 31, 2013 |  |  | For the ten months ended October 31, 2013
|  | (Successor) |  | (Successor) |  | (Successor) |  |  | (Predecessor)
Current: |  |  |  |  |  |  |  |  |
U.S.: |  |  |  |  |  |  |  |  |
Federal |  | $ | 0.7 |  |  | $ | (0.6 | ) |  | $ | 0.3 |  |  |  | $ | (5.3 | )
State and local |  | (0.2 | ) |  | 0.4 |  |  | 0.1 |  |  |  | 0.3 |
Foreign |  | 120.1 |  |  | 36.7 |  |  | 1.3 |  |  |  | 22.8 |
Total current |  | 120.6 |  |  | 36.5 |  |  | 1.7 |  |  |  | 17.8 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |  |
U.S.: |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | 6.4 |  |  | (18.3 | ) |  | (2.1 | ) |  |  | (3.1 | )
State and local |  | (5.2 | ) |  | 0.4 |  |  | (0.3 | ) |  |  | 0.1 |
Foreign |  | (46.7 | ) |  | (25.3 | ) |  | (5.1 | ) |  |  | (1.8 | )
Total deferred |  | (45.5 | ) |  | (43.2 | ) |  | (7.5 | ) |  |  | (4.8 | )
Income tax expense (benefit) |  | $ | 75.1 |  |  | $ | (6.7 | ) |  | $ | (5.8 | ) |  |  | $ | 13.0 |
Income tax expense (benefit) differed from the amounts computed by applying the U.S. Federal statutory tax rates to pretax income, as a result of the following:
(amounts in millions) |  | For the year ended December 31, 2015 |  | For the year ended December 31, 2014 |  | For the period from inception (April 23, 2013) through December 31, 2013 |  |  | For the ten months ended October 31, 2013
|  | (Successor) |  | (Successor) |  | (Successor) |  |  | (Predecessor)
U.S. federal statutory tax rate |  | 35.0 | % |  | 35.0 | % |  | 35.0 | % |  |  | 35.0 | %
Taxes computed at U.S. statutory rate |  | $ | (80.3 | ) |  | $ | (10.8 | ) |  | $ | (70.5 | ) |  |  | $ | 9.3 |
State income taxes, net of federal benefit |  | (3.6 | ) |  | 0.8 |  |  | 0.4 |  |  |  | (2.2 | )
Preferred dividend valuation |  | — |  |  | — |  |  | 60.2 |  |  |  | — |
Tax on foreign operations |  | 5.8 |  |  | (7.7 | ) |  | 0.4 |  |  |  | 0.8 |
Net change in reserve |  | 27.5 |  |  | 1.5 |  |  | (0.7 | ) |  |  | (0.1 | )
Change in valuation allowances |  | 72.6 |  |  | 0.2 |  |  | (0.9 | ) |  |  | 3.6 |
Provision for tax on undistributed foreign earnings |  | 5.0 |  |  | (3.7 | ) |  | 0.8 |  |  |  | (0.7 | )
Change of tax rate |  | (1.0 | ) |  | (0.5 | ) |  | — |  |  |  | (0.5 | )
Non-deductible transaction costs |  | 40.5 |  |  | 6.5 |  |  | 4.2 |  |  |  | 1.9 |
Foreign exchange impact on provision |  | — |  |  | — |  |  | — |  |  |  | 0.1 |
Purchase price contingency |  | 0.4 |  |  | 6.6 |  |  | — |  |  |  | — |
Other non-deductible items |  | 9.1 |  |  | — |  |  | — |  |  |  | — |
Other, net |  | (0.9 | ) |  | 0.4 |  |  | 0.3 |  |  |  | 0.8 |
Income tax expense (benefit) |  | $ | 75.1 |  |  | $ | (6.7 | ) |  | $ | (5.8 | ) |  |  | $ | 13.0 |
Effective tax rate |  | (32.8 | )% |  | 21.7 | % |  | 2.9 | % |  |  | 49.0 | %
The Company has provided deferred taxes of $7.1 million under ASC 740-30-25 for the potential repatriation to the United States of earnings from certain non-U.S. subsidiaries. The Company has not recognized a deferred tax liability for U.S. taxes on the undistributed earnings of most of its foreign subsidiaries because those earnings have been determined to be indefinitely reinvested. The undistributed earnings of those subsidiaries were $390 million and $264 million for the years ended December 31, 2015 and 2014, respectively. Quantification of the deferred tax liability, if any, associated with indefinitely reinvested earnings is not practicable. The components of deferred income taxes at December 31, 2015 and 2014 were as follows:
(amounts in millions) |  | December 31, 2015 |  | December 31, 2014
Deferred tax assets: |  |  |  |
Accounts receivable |  | $ | 8.9 |  |  | $ | 5.9 |
Inventory |  | 6.6 |  |  | — |
Accrued liabilities |  | 34.8 |  |  | 3.6 |
Employee benefits |  | 27.5 |  |  | 20.2 |
Research and development costs |  | 11.8 |  |  | 11.2 |
Tax credits |  | 49.3 |  |  | 39.3 |
Net operating losses |  | 332.3 |  |  | 17.5 |
Goodwill |  | 26.8 |  |  | 31.2 |
Financing activities |  | 30.7 |  |  | 4.5 |
Other |  | 41.4 |  |  | 11.9 |
Total deferred tax assets |  | 570.1 |  |  | 145.3 |
Valuation allowance |  | (403.6 | ) |  | (19.7 | )
Total gross deferred tax assets |  | 166.5 |  |  | 125.6 |
Deferred tax liabilities: |  |  |  |  |  |
Plant and equipment |  | 38.6 |  |  | 16.7 |
Intangibles |  | 767.3 |  |  | 280.1 |
Undistributed foreign earnings |  | 7.1 |  |  | 2.6 |
Inventory |  | — |  |  | 0.8 |
Other |  | 2.9 |  |  | 2.5 |
Total gross deferred tax liabilities |  | 815.9 |  |  | 302.7 |
Net deferred tax liability |  | $ | 649.4 |  |  | $ | 177.1 |
Effective December 31, 2015, the Company elected to early adopt ASU 2015-17, "Income Taxes: Balance Sheet Classification of Deferred Taxes," which eliminates the previous requirement to separate deferred income tax assets and liabilities into current and non-current amounts. Prior periods were not retrospectively adjusted. The following schedule presents net current and net long-term deferred tax assets and liabilities as of December 31, 2015 and 2014:
(amounts in millions) |  | December 31, 2015 |  | December 31, 2014
Net current deferred tax asset |  | $ | — |  |  | $ | 18.7 |
Net non-current deferred tax asset |  | 29.4 |  |  | 6.5 |
Net deferred tax asset |  | 29.4 |  |  | 25.2 |
Net non-current deferred tax liability |  | 678.8 |  |  | 202.3 |
Total net deferred tax liability |  | $ | 649.4 |  |  | $ | 177.1 |
Net non-current deferred tax assets are included in "Other assets" on the Consolidated Balance Sheet as of December 31, 2015. Net current deferred tax assets are included in "Prepaid expenses and other current assets" and net non-current deferred tax assets are included in "Other assets" on the Consolidated Balance Sheet as of December 31, 2014. Valuation allowances reflect the Company's assessment that it is more likely than not that certain state deferred tax assets and foreign net operating losses will not be realized. The assessment of the need for a valuation allowance requires management to make estimates and assumptions about future earnings, reversal of existing temporary differences and available tax planning strategies. If actual experience differs from these estimates and assumptions, the recorded deferred tax asset may not be fully realized, resulting in an increase to income tax expense in Platform's results of operations. The valuation allowance for deferred tax assets was $404 million and $19.7 million at December 31, 2015 and 2014, respectively. At December 31, 2015, the Company had federal, state and foreign net operating loss carry forwards of approximately $161 million, $413 million and $729 million, respectively. The Company also has a capital loss carry-forward of $76.1 million. The U.S. federal net operating loss carry-forwards expire between the years 2021 and 2035. The U.S. federal net operating loss carry-forwards result in a deferred tax asset of $56.4 million. The majority of the state net operating loss carry-forwards expire between the years 2017 and 2034. The state net operating loss carry-forwards result in a deferred tax asset of $21.3 million. Due to the historic and projected domestic losses, the Company has recorded a full valuation allowance against its U.S. federal and state net deferred tax assets exclusive of the indefinite lived assets. The foreign tax net operating loss carry-forwards expire between the years 2020 through 2035, with some being unlimited in utilization. This results in a deferred tax asset of $224 million. A valuation allowance of $206 million has been provided against the deferred tax assets associated with certain foreign net operating loss carry-forwards because the recent results of the business units associated with the loss carry-forwards indicate that it is more likely than not that the benefits from the net operating loss carry-forwards will not be fully realized. Section 382 of the Internal Revenue Code, or the Code, imposes an annual limitation on the amount of a corporation's U.S. federal taxable income that can be offset by net operating losses, or NOLs, if it experiences an "ownership change" (as defined in the Code). The Company experienced ownership changes in 2013 and 2015 with respect to the acquisition of various companies. Accordingly, the use of the Company's NOLs generated prior to these ownership changes is subject to an annual limitation. If certain changes in the Company's ownership occur prospectively, there could be an additional annual limitation on the amount of utilizable carryforwards. In addition, at December 31, 2015, the Company had approximately $29.2 million, $14.3 million, $4.3 million and $1.5 million of foreign tax credits, research and development credits, alternative minimum tax credits and state tax credits (net of federal tax), respectively, available for carry-forward. These carry-forward periods range from ten years to an unlimited period of time. As discussed above, a full valuation allowance has been recorded on the Company's U.S. federal and state net deferred tax assets exclusive of indefinite-lived assets. Tax Uncertainties The following table summarizes the activity related to the Company’s unrecognized tax benefits:
(amounts in millions) |  | For the year ended December 31, 2015 |  | For the year ended December 31, 2014 |  | For the period from inception (April 23, 2013) through December 31, 2013 |  |  | For the ten months ended October 31, 2013
|  | (Successor) |  | (Successor) |  | (Successor) |  |  | (Predecessor)
Unrecognized tax benefits at beginning of period |  | $ | 27.7 |  |  | $ | 25.6 |  |  | $ | — |  |  |  | $ | 22.7 |
Additions based on current year tax positions |  | 20.7 |  |  | 1.7 |  |  | 0.3 |  |  |  | 0.8 |
Additions based upon prior year tax positions (including acquired uncertain tax positions) |  | 72.2 |  |  | 7.4 |  |  | 26.3 |  |  |  | 0.3 |
Reductions due to closed statutes |  | (2.9 | ) |  | (6.7 | ) |  | (1.0 | ) |  |  | (0.3 | )
Reductions for settlements and payments |  | (5.5 | ) |  | (0.3 | ) |  | — |  |  |  | — |
Total unrecognized tax benefits at end of period |  | $ | 112.2 |  |  | $ | 27.7 |  |  | $ | 25.6 |  |  |  | $ | 23.5 |
The Company has $112 million of total unrecognized tax benefits as of December 31, 2015, of which $92 million, if recognized, would impact the Company’s effective tax rate. The Company made payments in 2015 to settle uncertain tax liabilities of $3.4 million. Due to expected statute of limitations expirations, the Company estimates that $10.0 million of the total unrecognized benefits will reverse within the next twelve months. The Company recognizes interest and/or penalties related to income tax matters as part of income tax expense (benefit), which totaled $4.9 million, $1.0 million and $(0.10) million, and $(0.2) million for the years ended December 31, 2015,2014, and the Successor and Predecessor 2013 Period. The Company's accrual for interest and penalties totaled $17.5 million and $4.7 million as of December 31, 2015 and 2014, respectively. As of December 31, 2015, the following tax years remained subject to examination by the major tax jurisdictions indicated below:
Major Jurisdictions |  | Open Years
Belgium |  | 2009 |  | through current
Brazil |  | 2009 |  | through current
China |  | 2009 |  | through current
France |  | 2009 |  | through current
Japan |  | 2010 |  | through current
Mexico |  | 2010 |  | through current
Netherlands |  | 2011 |  | through current
South Africa |  | 2011 |  | through current
Taiwan |  | 2010 |  | through current
United Kingdom |  | 2009 |  | through current
The Company is subject to taxation in the U.S. and various states and foreign jurisdictions. As of December 31, 2015, the Company's tax years for 2012, 2013 and 2014 are subject to examination by the U.S. federal tax authorities. With few exceptions, as of December 31, 2015, the Company is no longer subject to state and local or foreign examinations by tax authorities for years before 2009. The Company is currently undergoing tax examination in several foreign jurisdictions. The Company believes it has appropriately accrued for the expected outcome of uncertain tax matters and believes such liabilities represent a reasonable provision for taxes ultimately expected to be paid. However, our liability may need to be adjusted as new information becomes known and as tax examinations continue to progress.

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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 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 + Details
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