XML 27 R16.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Income Taxes | 9 Months Ended
--- | ---
Sep. 30, 2018
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Our income tax provision for the periods presented and the respective effective income tax rates for such periods are as follows (in millions, except for income tax rates):
|  | For the Three Months Ended |  | For the Nine Months Ended
|  | September 30, |  | September 30,
|  | 2018 |  | 2017 |  | 2018 |  | 2017
Income tax provision |  | $ | 23.0 |  |  | $ | 82.6 |  |  | $ | 42.7 |  |  | $ | 92.2 |
Effective income tax rate |  | 37.3 | % |  | 185.0 | % |  | 30.1 | % |  | 79.8 | %
Our provision for income taxes for the three months ended September 30, 2018 was $23.0 million resulting in an effective income tax rate of 37.3%. The provision includes an adjustment for an income tax expense of $1.5 million, net, for discrete items primarily related to a change in valuation allowance in the U.S. Without the $1.5 million in discrete items, the effective income tax rate would have been 34.9% for the three months ended September 30, 2018. Our provision for income taxes for the three months ended September 30, 2017 was $82.6 million resulting in an effective tax rate of 185%. The provision includes a valuation allowance recorded against our U.S. deferred tax assets of $76.9 million. The valuation allowance was comprised of $24.0 million of deferred tax assets generated during 2017 and $52.9 million related to deferred tax assets generated in previous years. In addition, the provision also included an income tax expense of $1.7 million, net, for discrete items related to changes in estimates in uncertain tax positions, and an adjustment for stock based compensation. Without the $76.9 million valuation allowance and the $1.7 million in discrete items, the three months ended September 30, 2017. effective income tax rate would have been 12.5%. Our provision for income taxes for the nine months ended September 30, 2018 was $42.7 million resulting in an effective income tax rate of 30.1%. The provision includes an adjustment for an income tax benefit of $7.4 million, net, for discrete items primarily related to an adjustment pursuant to the accounting of the Tax Reform Act, changes in the valuation allowance in various jurisdictions, and an adjustment for stock based compensation in accordance with ASU 2016-09. Without the $7.4 million benefit in discrete items, the effective income tax rate would have been 35.3% for the nine months ended September 30, 2018. Our provision for income taxes for the nine months ended September 30, 2017 was $92.2 million resulting in an effective tax rate of 79.8%. The provision includes a valuation allowance of $76.9 million and other discrete amounts, net, of $5.6 million related to changes in estimates in uncertain tax positions, and an adjustment for stock based compensation in accordance with ASU 2016-09. Without the valuation allowance of $76.9 million and other discrete items, the effective income tax rate would have been 8.3% for the nine months ended September 30, 2017. Our provision for income taxes for each of the three and nine months ended September 30, 2018 and 2017 was calculated based on the estimated annual effective income tax rate for 2018 and 2017 fiscal years. The actual effective income tax rate for the 2018 fiscal year may be materially different as a result of differences between estimated versus actual results and the geographic tax jurisdictions in which the results are earned. We have various income tax returns under examination both in the U.S. and foreign jurisdictions. The most significant of these are in South Korea for the 2011 to 2014 tax years, Denmark for the 2013 to 2015 tax years and the U.S. for the 2013 to 2016 tax years. In 2017, the South Korean branch of one of our subsidiaries received income tax assessment notices for the years 2011 to 2014 totaling $10.2 million (KRW 11.3 billion). We believe that these assessments are without merit and are currently appealing the actions. During the quarter ended March 31, 2018, one of our subsidiaries in Denmark received an audit inquiry from the Danish tax authority relating to transfer pricing and related issues for the tax years 2013 to 2015. In addition, in 2017, we received a notice of examination from the U.S. Internal Revenue Service for the 2013 to 2016 tax years. We are currently responding to the requests from the U.S. and Danish tax authorities. 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 or we have not yet reached the final stages of the appeals process, the timing of the ultimate resolution and any payments that may be required for the above matters cannot be determined at this time.

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