XML 31 R18.htm IDEA: XBRL DOCUMENT v3.10.0.1
Income Taxes
9 Months Ended
Sep. 30, 2018
Income Tax Disclosure [Abstract]  
Income Taxes
Note 12Income Taxes
In determining the quarterly provision for income taxes, management uses an estimated annual effective tax rate based on forecasted annual pre-tax income, permanent tax differences, statutory tax rates and tax planning opportunities in the various jurisdictions in which the Company operates. The effect of significant discrete items is separately recognized in the quarter(s) in which they occur.
In December 2017, the Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”) was enacted, which included broad tax reform that is applicable to the Company. Under the provisions of the 2017 Tax Act, the U.S. corporate tax rate decreased from 35% to 21% effective January 1, 2018. The Company completed an initial remeasurement of its U.S. deferred tax assets and liabilities as of December 31, 2017 as a result of this new tax law and recognized a non-cash tax benefit of $120.1 million in the fourth quarter of 2017. This initial remeasurement contained estimates of the effect of the 2017 Tax Act, as permitted under Staff Accounting Bulletin (“SAB”) 118. In March 2018, the FASB issued ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118, which amended Topic 740 to incorporate the requirements of SAB 118. Under this guidance, revisions to the initial remeasurement of the Company’s deferred tax assets and liabilities as of December 31, 2017 are to be treated in accordance with the measurement period guidance as outlined in Topic 740 and SAB 118. Such revisions could result from refinement of the Company’s initial calculations, additional interpretations of the 2017 Tax Act, newly obtained information pertaining to the Company’s deferred tax balances as of December 31, 2017, and/or tax accounting method changes.
For the nine month period ended September 30, 2018, the Company recognized a net tax benefit of approximately $16.4 million related to the 2017 Tax Act, primarily from finalization of its tax return for the year ended December 31, 2017, certain tax accounting method changes and other adjustments to the initial remeasurement of its deferred tax balances as of December 31, 2017. While the Company has substantially completed its provisional analysis, additional adjustments to its estimates may be required, which could affect the Company’s provision for income taxes in future periods.