|3 Months Ended|
Mar. 31, 2018
|Income Tax Disclosure [Abstract]|
During the three months ended March 31, 2018 and 2017, the Company recorded income tax benefit of $0.7 million and $2.1 million, respectively, resulting in effective tax rates of 29.1% and 25.2%, respectively. The increase in effective tax rates is primarily due to the reversal of a previously reserved deposit following a favorable decision on a Brazilian customs dispute.
During the three months ended March 31, 2018 and 2017, there were no new uncertain tax positions identified. The Company’s 2015 federal income tax return is currently under examination by the Internal Revenue Service.
Amounts accrued for interest and penalties associated with unrecognized income tax benefits are included in other expense on the condensed consolidated statements of operations. As of March 31, 2018 and December 31, 2017, the gross amount of liability for accrued interest and penalties related to unrecognized tax benefits was $0.1 million.
As of March 31, 2018, the Company considers the accounting for the transition tax and other items to remain incomplete due to the forthcoming guidance and its ongoing analysis of its tax positions. As of March 31, 2018, the Company has not elected an accounting policy for the newly enacted global intangible low-taxed income (“GILTI”) at this time. Recent FASB guidance indicates that accounting for GILTI either as part of deferred taxes or as a period cost are both applicable methods. Once further information is gathered and interpretation and analysis of the tax legislation evolves, the Company will make an appropriate accounting election. The Company expects to complete its analysis within the measurement period in accordance with SAB 118.
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.
Reference 1: http://www.xbrl.org/2003/role/presentationRef