Income Tax Expense

3 Months Ended

Mar. 31, 2016

Income Tax Expense [Abstract]

Income Tax Expense

NOTE 10.  INCOME TAX EXPENSE

Income tax expense was $12.1 million on a pre-tax income of $0.5 million for the first quarter of 2016 compared to income tax expense of $20.1 million on pre-tax income of $23.9 million in the first quarter of 2015.  Excluding the impact of the decrease in pre-tax earnings, the effective tax rate for the first quarter of 2016 was flat in comparison to the same period in 2015. Income tax expense in the first quarter of 2016 was negatively affected by tax impacts resulting from the separation of AFI.  Income tax expense in the first quarter of 2015 was negatively affected by state net operating loss write-offs as a result of a change in ownership under Section 382 of the Internal Revenue Code.  

We do not expect to record any material changes during 2016 to unrecognized tax benefits that were claimed on tax returns covering tax years ending on or before December 31, 2015.

As of March 31, 2016, we consider foreign unremitted earnings to be permanently reinvested.