XML 30 R15.htm IDEA: XBRL DOCUMENT
v3.8.0.1

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2017
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES On December 22, 2017, the Tax Cut and Jobs Act ("TCJA") was enacted in the United States. The TCJA significantly changes U.S. corporate tax impacts by, among other things, lowering the corporate tax rate to 21% from 35% effective January 1, 2018, implementing a territorial tax system and imposing a one-time repatriation tax on previously untaxed, accumulated earnings of foreign subsidiaries. As a result of the new tax law, the Securities and Exchange Commission ("SEC") staff issued Staff Accounting Bulletin No. 118 ("SAB 118"). SAB 118 allows companies to record the tax impacts of the new law as provisional amounts during a measurement period of up to one year from the enactment date of the new law. The Company has recognized a provisional amount for the one-time repatriation tax of approximately $5.2 million and utilized its available net operating losses to offset this tax. The Company expects to complete its analysis of the historical earnings and profits of all of its foreign subsidiaries and record any adjustment to the provisional amount within the one year measurement period. Deferred tax assets and liabilities are measured using enacted tax rates expected to be in place in the year in which they are expected to reverse. As a result of the reduction in the U.S. corporate income tax rate, the Company revalued its net deferred tax assets in the U.S. at December 31, 2017 and recorded tax expense of approximately $10.3 million. On December 31, 2017 the French Parliament adopted the Finance Law for 2018. Under this law, French corporate income tax rates are reduced from 33.33% to 25% over a five year period. As a result of the scheduled reductions in the French corporate income tax rate, the Company revalued its French net deferred tax assets at December 31, 2017 and recorded tax expense of approximately $0.5 million. The Company will continue to analyze the impacts of the TCJA on its consolidated financial statements. Any additional impacts from the enactment of the TCJA will be recorded as they are identified during the measurement period. The following table summarizes our U.S. and foreign components of income (loss) from continuing operations before income taxes (in millions):
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
United States | $ | 47.8 |  |  | $ | 8.6 |  |  | $ | (22.3 | )
Foreign | 23.0 |  |  | 17.5 |  |  | 10.6 |
Total | $ | 70.8 |  |  | $ | 26.1 |  |  | $ | (11.7 | )
The following table summarizes the (benefit) provision for income taxes from continuing operations (in millions):
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
Current: |  |  |  |  |
Federal | $ | 0.7 |  |  | $ | 0.1 |  |  | $ | 3.1 |
State | 1.1 |  |  | 1.2 |  |  | 0.8 |
Foreign | 10.7 |  |  | 3.8 |  |  | 4.1 |
Total current | $ | 12.5 |  |  | $ | 5.1 |  |  | $ | 8.0 |
Deferred: |  |  |  |  |  |  |  |
Federal | $ | (12.6 | ) |  | $ | — |  |  | $ | 0.2 |
State | (3.6 | ) |  | 1.1 |  |  | (0.2 | )
Foreign | (1.6 | ) |  | 3.0 |  |  | 4.3 |
Total deferred | $ | (17.8 | ) |  | $ | 4.1 |  |  | $ | 4.3 |
TOTAL | $ | (5.3 | ) |  | $ | 9.2 |  |  | $ | 12.3 |
Tax benefit (expense) from discontinued operations was $3.7 million, $(0.8) million and $2.1 million for the years ended December 31, 2017, 2016 and 2015, respectively. Income taxes are accrued and paid by each foreign entity in accordance with applicable local regulations. A reconciliation of the difference between the income tax expense and the computed income tax expense based on the Federal statutory corporate rate is as follows (in millions):
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
Income tax at Federal statutory rate | $ | 24.8 |  |  | 35.0 | % |  | $ | 9.1 |  |  | 35.0 | % |  | $ | (4.1 | ) |  | 35.0 | %
Foreign taxes at rates different from the U.S. rate | 1.1 |  |  | 1.6 | % |  | 0.8 |  |  | 3.1 | % |  | 1.4 |  |  | (12.0 | )%
State and local income taxes, net of federal tax benefit | 5.0 |  |  | 7.1 | % |  | (0.7 | ) |  | (2.7 | )% |  | (1.4 | ) |  | 12.0 | %
Impact of state rate changes | 0.3 |  |  | 0.5 | % |  | 1.4 |  |  | 5.3 | % |  | 0.7 |  |  | (6.0 | )%
Changes in valuation allowances | (21.7 | ) |  | (30.7 | )% |  | (1.2 | ) |  | (4.6 | )% |  | 15.9 |  |  | (135.8 | )%
Reversal of valuation allowances | (29.4 | ) |  | (41.5 | )% |  | — |  |  | — | % |  | — |  |  | — | %
2017 TCJA, net deferred tax remeasurment and repatriation tax impacts | 15.7 |  |  | 22.1 | % |  | — |  |  | — | % |  | — |  |  | — | %
Non-deductible items | (0.4 | ) |  | (0.6 | )% |  | (0.3 | ) |  | (1.2 | )% |  | — |  |  | — | %
Other items, net | (0.7 | ) |  | (1.0 | )% |  | 0.1 |  |  | 0.4 | % |  | (0.2 | ) |  | 1.7 | %
Income tax | $ | (5.3 | ) |  | (7.5 | )% |  | $ | 9.2 |  |  | 35.3 | % |  | $ | 12.3 |  |  | (105.1 | )%
The deferred tax assets and liabilities are comprised of the following (in millions):
| December 31,
| 2017 |  | 2016
Assets: |  |  |
Accrued expenses and other liabilities | $ | 5.9 |  |  | $ | 12.1 |
Inventory | 1.1 |  |  | 1.5 |
Depreciation | 1.4 |  |  | 0.6 |
Intangible & other | 8.1 |  |  | 13.2 |
Net operating loss and credit carryforwards | 28.6 |  |  | 46.5 |
Valuation allowances | (18.9 | ) |  | (69.7 | )
Total non-current deferred tax assets | 26.2 |  |  | 4.2 |
Liabilities: |  |  |  |  |
Non-current: |  |  |  |  |
Other | $ | 0.1 |  |  | $ | 0.3 |
Total non-current liabilities | $ | 0.1 |  |  | $ | 0.3 |
During 2017 the Company utilized approximately $26.4 million of U.S. federal net operating losses to offset U.S. federal pretax income and in the fourth quarter of 2017 the Company reversed approximately $29.4 million of valuation allowances against its U.S. federal and certain state deferred tax assets as the Company determined that it was more likely than not that the deferred tax assets will be utilized. During the current year the Company recorded valuation allowances against deferred tax assets of approximately $0.6 million in jurisdictions where the Company has continued losses and the Company believes it is not more likely than not that the deferred tax assets will be utilized . The Company has not provided for federal income taxes applicable to the undistributed earnings of its foreign subsidiary in India of approximately $1.4 million as of December 31, 2017, since these earnings are considered indefinitely reinvested. The Company has gross foreign net operating loss carryforwards of $33.9 million which expire through 2032 and gross U.S. federal net operating loss carry forwards of $35.9 million which expire through 2036. The Company records these benefits as assets to the extent that utilization of such assets is more likely than not; otherwise, a valuation allowance has been recorded. The Company has also provided valuation allowances for certain state deferred tax assets and net operating loss carryforwards where it is not likely they will be realized. As of December 31, 2017, the Company has approximately $1.3 million in federal tax credit carryforwards expiring in years through 2026 and various amounts of state and foreign net operating loss carryforwards expiring through 2037. The Company has recorded valuation allowances of approximately $18.9 million, including valuations against state deductibility of temporary differences including net operating losses carryforwards of $7.4 million, foreign tax credits of $1.3 million and tax effected temporary differences and net operating loss carryforwards in foreign jurisdictions of $10.2 million. The Company is routinely audited by federal, state and foreign tax authorities with respect to its income taxes. The Company regularly reviews and evaluates the likelihood of audit assessments. The Company’s federal income tax returns have been audited through 2013. The Company has not signed any consent to extend the statute of limitations for any subsequent years. The Company’s significant state tax returns have been audited through 2009. The Company considers its significant tax jurisdictions in foreign locations to be France and Canada. The Company remains subject to examination in France for years after 2013 and in Canada for years after 2013. In accordance with the guidance for accounting for uncertainty in income taxes the Company recognizes the tax benefits from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefit of an uncertain tax position that meets the more-likely-than-not recognition threshold is measured as the largest amount that is greater than 50% likely to be realized upon settlement with the tax authority. To the extent we prevail in matters for which accruals have been established or are required to pay amounts in excess of accruals, our effective tax rate in a given financial statement period could be affected. As of December 31, 2017, the Company had no uncertain tax positions. Interest and penalties, if any, are recorded in income tax expense. There were no accrued interests or penalty charges related to unrecognized tax benefits recorded in income tax expense in 2017, 2016 or 2015.

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://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=65882285&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=65882285&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=65882285&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=65882285&loc=d3e32537-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration