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INCOME TAXES | 12 Months Ended
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Dec. 31, 2018
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. In 2017, the Company 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. During 2018, the Company completed its accounting for the impacts of the TCJA and adjusted its provisional repatriation tax to approximately $4.5 million, with the difference recorded as a measurement period true up in the 2018 provision. This measurement period adjustment had a favorable impact on the 2018 effective tax rate of approximately 1.1%. 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 $10.4 million in 2017 which was offset by the utilization of available net operating losses. 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,
| 2018 |  | 2017 |  | 2016
United States | $ | 62.8 |  |  | $ | 45.6 |  |  | $ | 6.7 |
Foreign | 0.1 |  |  | (0.1 | ) |  | (0.2 | )
Total | $ | 62.9 |  |  | $ | 45.5 |  |  | $ | 6.5 |
The following table summarizes the (benefit) provision for income taxes from continuing operations (in millions):
| Year Ended December 31,
| 2018 |  | 2017 |  | 2016
Current: |  |  |  |  |
Federal | $ | 2.6 |  |  | $ | 0.7 |  |  | $ | 0.1 |
State | 2.4 |  |  | 1.1 |  |  | 1.2 |
Foreign | 0.0 |  |  | 0.1 |  |  | 0.2 |
Total current | $ | 5.0 |  |  | $ | 1.9 |  |  | $ | 1.5 |
Deferred: |  |  |  |  |  |  |  |
Federal | $ | 7.7 |  |  | $ | (18.3 | ) |  | $ | 0.0 |
State | 0.6 |  |  | (3.6 | ) |  | 1.1 |
Foreign | 0.1 |  |  | 0.0 |  |  | 0.0 |
Total deferred | $ | 8.4 |  |  | $ | (21.9 | ) |  | $ | 1.1 |
TOTAL | $ | 13.4 |  |  | $ | (20.0 | ) |  | $ | 2.6 |
Tax expense from discontinued operations was $23.0 million, $11.0 million and $7.4 million for the years ended December 31, 2018, 2017 and 2016, 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,
| 2018 |  | 2017 |  | 2016
Income tax at Federal statutory rate | $ | 13.2 |  |  | 21.0 | % |  | $ | 15.9 |  |  | 35.0 | % |  | $ | 2.3 |  |  | 35.0 | %
State and local income taxes, net of federal tax benefit | 2.6 |  |  | 4.1 | % |  | 5.0 |  |  | 11.0 | % |  | (0.7 | ) |  | (10.8 | )%
Impact of state rate changes | (0.1 | ) |  | (0.2 | )% |  | 0.3 |  |  | 0.7 | % |  | 1.4 |  |  | 21.5 | %
Changes in valuation allowances | 0.0 |  |  | 0.0 | % |  | (21.7 | ) |  | (47.7 | )% |  | (0.6 | ) |  | (9.2 | )%
Reversal of valuation allowances | (0.2 | ) |  | (0.3 | )% |  | (29.4 | ) |  | (64.6 | )% |  | 0.0 |  |  | 0.0 | %
2017 TCJA, net deferred tax remeasurement and repatriation tax impacts | (0.7 | ) |  | (1.1 | )% |  | 10.4 |  |  | 22.9 | % |  | 0.0 |  |  | 0.0 | %
Non-deductible items | (1.4 | ) |  | (2.2 | )% |  | 0.1 |  |  | 0.2 | % |  | 0.1 |  |  | 1.5 | %
Other items, net | 0.0 |  |  | 0.0 | % |  | (0.6 | ) |  | (1.5 | )% |  | 0.1 |  |  | 1.5 | %
Income tax | $ | 13.4 |  |  | 21.3 | % |  | $ | (20.0 | ) |  | (44.0 | )% |  | $ | 2.6 |  |  | 39.5 | %
The deferred tax assets and liabilities are comprised of the following (in millions):
| December 31,
| 2018 |  | 2017
Assets: |  |  |
Accrued expenses and other liabilities | $ | 2.8 |  |  | $ | 2.4 |
Inventory | 1.3 |  |  | 1.1 |
Intangible & other | 3.8 |  |  | 6.9 |
Net operating loss and credit carryforwards | 19.3 |  |  | 28.0 |
Valuation allowances | (18.3 | ) |  | (18.3 | )
Total non-current deferred tax assets | 8.9 |  |  | 20.1 |
Liabilities: |  |  |  |  |
Non-current: |  |  |  |  |
Other | $ | 0.1 |  |  | $ | 0.1 |
Total non-current liabilities | $ | 0.1 |  |  | $ | 0.1 |
During 2018 the Company utilized approximately $39.2 million of U.S. federal net operating loss carryforwards ("NOLs") to offset U.S. federal pretax income and approximately $9.1 million in state NOLs to offset state pretax income. The Company has no remaining U.S. federal NOLs available as of December 31, 2018. As of December 31, 2018, the Company has foreign NOLs of $9.2 million which expire through 2032 and foreign tax credit carryforwards of $1.7 million expiring in years through 2027. The Company has recorded valuation allowances of approximately $18.3 million, including valuations against state net operating loss carryforwards of $7.1 million, foreign NOLs of $9.2 million, $0.3 million against the deductibility of state and foreign temporary tax differences and $1.7 million against foreign tax carryforwards. Valuation allowances have been recorded against these assets as the Company believes it is more likely than not that these NOLs, temporary differences and foreign tax credits will not be utilized in the near future. The Company has not provided for federal income taxes applicable to the undistributed earnings of its foreign subsidiary in India and Canada of approximately $1.5 million as of December 31, 2018, since these earnings are considered permanently reinvested in the subsidiaries. The Company's permanent reinvestment assertion has not changed following the enactment of the TCJA. If the Company ceases to be permanently reinvested in its foreign subsidiaries, the Company may be subject to foreign withholding and other taxes on undistributed earnings and may need to record a deferred tax liability for any outside basis difference in its investments in its foreign subsidiaries. The Company recorded tax expense in discontinued operations of approximately $23.0 million primarily from tax on the Company's former French operations and tax expense from Global intangible low taxed income ("GILTI"). Under the TCJA each U.S. shareholder of a controlled foreign corporation ("CFC") must include in its gross taxable income in any tax year the aggregate net GILTI, or net income, of its CFCs. In 2018 the Company has included in taxable income the net income of its subsidiaries in the Netherlands, India, Canada and France which in 2018 also includes the net income from the sale by the Company of its French subsidiaries. The Company has elected to treat GILTI expense as a period cost when incurred. 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, 2018, the Company had no uncertain tax positions. Interest and penalties, if any, are recorded in income tax expense. There were no accrued interest or penalty charges related to unrecognized tax benefits recorded in income tax expense in 2018, 2017 or 2016.

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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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