XML 39 R23.htm IDEA: XBRL DOCUMENT v3.8.0.1
Income Taxes (Notes)
 9 Months Ended
Sep. 30, 2017
Income Tax Disclosure [Abstract]  
Income Taxes
Note 16 - Income Taxes
Our effective tax rate for the nine months ended September 30, 2017 and 2016 was 15.7% and 3.7%, respectively, on pre-tax losses of $98.7 million and $196.2 million, respectively. The increase in our effective tax rate and the income tax benefits recorded on the pre-tax losses is due primarily to the tax benefit recognized on the reversal of uncertain tax positions (including interest and penalties) due to the expiration of applicable statutes of limitation during the nine months ended September 30, 2017, as compared to additional tax expense recognized during the nine months ended September 30, 2016 related to uncertain tax positions, offset in part by a decrease in tax benefits resulting from our inability to carry back current losses that are being generated in the U.S. and USVI tax jurisdictions.
A reconciliation of the beginning and ending amount of the total liability for uncertain tax positions is as follows for the nine months ended September 30:
 
2017
 
2016
Beginning balance
$
16,994

 
$
32,548

Reductions for settlements
(387
)
 
(14,420
)
Lapses in statutes of limitation
(16,607
)
 
(524
)
Ending balance
$
—

 
$
17,604


As of September 30, 2017 and 2016, we had $0.0 million and $17.6 million, respectively, of unrecognized tax benefits, all of which if recognized would affect the effective tax rate. We accrue interest and penalties related to unrecognized tax benefits in our provision for income taxes. At September 30, 2017 and 2016, we had accrued interest and penalties related to unrecognized tax benefits of $0.0 million and $6.1 million, respectively.
Our major jurisdiction tax years that remain subject to examination are our U.S. federal tax return for the years ended December 31, 2014 through the present, our USVI corporate tax return for the years ended December 31, 2014 through the present, and our India corporate tax returns for the years ended March 31, 2010 through the present. We currently do not have any tax returns under income tax examination in the U.S. or USVI tax jurisdictions.