XML 57 R37.htm IDEA: XBRL DOCUMENT v3.6.0.2

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

The components of earnings before income taxes were:

	Years Ended December 31,
(in millions)	2016				2015				2014
Domestic	$	(60.5	)		$	(66.9	)		$	(5.8	)
Foreign	91.3				89.5				138.3
Total earnings before income taxes	$	30.8			$	22.6			$	132.5

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense for the years ended December 31, 2016, 2015 and 2014 is comprised of the following:

	Years Ended December 31,
(in millions)	2016				2015				2014
Current:
U.S. Federal	$	—			$	1.9			$	2.9
State and local	0.1				—				0.2
Foreign	10.1				12.7				22.3
Total current tax expense	10.2				14.6				25.4
Deferred:
U.S. Federal	$	0.9			$	(3.3	)		$	(10.4	)
State and local	0.2				(0.1		)		(0.1		)
Foreign	0.4				(5.1		)		(2.0		)
Total deferred tax expense (benefit)	1.5				(8.5		)		(12.5		)
Total income tax expense	$	11.7			$	6.1			$	12.9

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of the U.S. federal income tax rate to the Company’s effective income tax rate was as follows:

	Years Ended December 31,
	2016			2015			2014
U.S. Federal income tax rate	35.0	%		35.0	%		35.0	%
State and local taxes, net of Federal income tax benefit	1.0	%		(6.8	)%		(0.3	)%
Foreign operations tax effect	(28.0	)%		(42.6	)%		(10.7	)%
Research & experimentation tax credits	(6.0	)%		(11.3	)%		(1.6	)%
Valuation allowance	74.6	%		103.1	%		(0.1	)%
Tax contingencies	(0.5	)%		(2.1	)%		0.6	%
Tax holiday	(58.6	)%		(79.9	)%		(19.0	)%
Foreign taxes	6.8	%		12.7	%		1.3	%
Non-deductible transaction costs	—	%		5.3	%		—	%
Stock based compensation	8.8	%		4.3	%		—	%
Other, principally non-tax deductible items	4.7	%		8.7	%		2.6	%
Prior period items	0.2	%		0.6	%		2.0	%
Effective income tax rate	38.0	%		27.0	%		9.8	%

Schedule of Deferred Tax Assets and Liabilities

The components of the Company’s deferred tax assets and liabilities included the following:

(in millions)	December 31, 2016				December 31, 2015
Deferred tax assets:
Accrued compensation, principally post-retirement and other employee benefits	$	19.0			$	16.2
Accrued expenses, principally for state income taxes, interest and warranty	6.5				5.0
Net operating loss and other carryforwards	148.2				123.4
Inventories, principally due to reserves for financial reporting purposes and capitalization for tax purposes	7.5				6.8
Convertible Note Hedges	14.6				—
Plant and equipment, principally due to differences in depreciation	4.4				6.5
Total gross deferred tax assets	200.2				157.9
Valuation allowance	(161.3		)		(127.4		)
Total deferred tax assets	$	38.9			$	30.5
Deferred tax liabilities:
Intangible assets, principally due to different tax and financial reporting bases and amortization lives	$	(27.3	)		$	(30.1	)
Debt discount on convertible notes	(11.6		)		—
Other liabilities	(6.7		)		(2.5		)
Total gross deferred tax liabilities	(45.6		)		(32.6		)
Net deferred tax liability	$	(6.7	)		$	(2.1	)
Classified as follows in the consolidated balance sheets:
Other assets and deferred charges (non-current deferred tax assets) (1)	$	15.0			$	16.3
Deferred income taxes (non-current deferred tax liabilities) (1)	(21.7		)		(18.4		)
Net deferred tax liability	$	(6.7	)		$	(2.1	)

Schedule of Unrecognized Tax Benefits Roll Forward

Included in the balance of total unrecognized tax benefits at December 31, 2016 are potential benefits of $3.4 million, which if recognized, would affect the effective rate on income from continuing operations. Given the Company's current valuation allowance position, no benefit is expected to result from the reversal of any uncertain tax position associated with the acquired U.S. attributes.

Unrecognized tax benefits at January 1, 2014	$	5.5
Additions based on tax positions related to the current year	0.1
Additions for tax positions of prior years	0.7
Reductions for tax positions of prior years	(1.3		)
Unrecognized tax benefits at December 31, 2014	$	5.0
Reductions for tax positions due to lapsed statutes of limitations	(0.6		)
Additions for acquisitions	8.4
Unrecognized tax benefits at December 31, 2015	$	12.8
Reductions for tax positions due to lapsed statutes of limitations	(1.0		)
Unrecognized tax benefits at December 31, 2016	$	11.8

X

- References

No definition available.

+ Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

Reference 1: 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=65882285&loc=d3e32639-109319

+ Details

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: 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=65882285&loc=d3e32537-109319

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32687-109319

+ Details

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

+ 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)(1)(i))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

+ Details

Name:	us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the change in unrecognized tax benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 55
-Paragraph 217
-URI http://asc.fasb.org/extlink&oid=75116239&loc=d3e36027-109320

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15A
-URI http://asc.fasb.org/extlink&oid=65882285&loc=SL6600010-109319

+ Details

Name:	us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration