INCOME TAXES |
6 Months Ended |
|---|---|
Jun. 30, 2017 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | INCOME TAXES The Corporation’s effective tax rate was (2.8)% and 75.7% for the three months ended June 30, 2017 and 2016, respectively. The decrease in the 2017 effective tax rate is primarily due to several factors including fluctuations in earnings among the various jurisdictions in which the Corporation operates, partially offset by increases in valuation allowances from U.S. losses and foreign tax rate differentials. The Corporation’s effective tax rate was (32.8)% and 16.3% for the six months ended June 30, 2017 and 2016, respectively. The increase in the 2017 effective tax rate is primarily due to several factors including fluctuations in earnings among the various jurisdictions in which the Corporation operates, increases in valuation allowances from U.S. losses partially offset by decreases in permanent tax differences. The primary reason the 2017 effective tax rate differs from the 35% Federal statutory corporate rate is increases in valuation allowances from U.S. losses, permanent tax differences and foreign tax rate differentials. Earnings associated with the investments in the Corporation’s foreign subsidiaries are considered to be indefinitely reinvested outside of the U.S. Therefore, a U.S. provision for income taxes on those earnings or translation adjustments has not been recorded. Determination of any unrecognized deferred tax liability for temporary differences related to investments in foreign subsidiaries that are essentially permanent in duration is not practicable due to the inherent complexity of the multi-national tax environment in which the Corporation operates. The Corporation believes that without positive evidence, it is more likely than not that the benefit from certain net operating loss (“NOL”) carryforwards and foreign tax credits may not be realized. In recognition of this risk, the Corporation has maintained a full valuation allowance for the deferred tax assets relating to these NOL carryforwards and foreign tax credits of certain countries. |