| Income Tax Disclosure [Abstract] | Period [Axis] |
|---|
2016-01-01 - 2016-12-31 |
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Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense Benefit | Income from continuing operations before income taxes and equity in net income of unconsolidated investments, and current and deferred income tax expense (benefit) are composed of the following (in thousands): | | | | | | | | | | | | | | Year Ended December 31, | | 2016 | | 2015 | | 2014 | Income from continuing operations before income taxes and equity in net income of unconsolidated investments: | | | | | | Domestic | $ | 49,630 |
| | $ | (15,861 | ) | | $ | 45,689 |
| Foreign | 465,634 |
| | 326,605 |
| | 167,490 |
| Total | $ | 515,264 |
| | $ | 310,744 |
| | $ | 213,179 |
| | | | | | | Current income tax expense (benefit): | | | | | | Federal | $ | 7,717 |
| | $ | 76,778 |
| | $ | 36,708 |
| State | 1,407 |
| | (983 | ) | | 3,209 |
| Foreign | 63,957 |
| | 58,710 |
| | 25,700 |
| Total | $ | 73,081 |
| | $ | 134,505 |
| | $ | 65,617 |
| | | | | | | Deferred income tax expense (benefit): | | | | | | Federal | $ | 12,230 |
| | $ | (127,212 | ) | | $ | (32,890 | ) | State | (1,715 | ) | | (1,267 | ) | | (1,139 | ) | Foreign | 12,667 |
| | 5,108 |
| | (13,104 | ) | Total | $ | 23,182 |
| | $ | (123,371 | ) | | $ | (47,133 | ) | | | | | | | Total income tax expense | $ | 96,263 |
| | $ | 11,134 |
| | $ | 18,484 |
|
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Significant Differences Between United States Federal Statutory Rate and Effective Income Tax Rate | The reconciliation of the U.S. federal statutory rate to the effective income tax rate is as follows: | | | | | | | | | | | % of Income Before Income Taxes | | 2016 | | 2015 | | 2014 | Federal statutory rate | 35.0 | % | | 35.0 | % | | 35.0 | % | State taxes, net of federal tax benefit | (0.1 | ) | | 1.4 |
| | 0.2 |
| Change in valuation allowance | 3.7 |
| | 5.7 |
| | 1.0 |
| Impact of foreign earnings, net(a) | (19.3 | ) | | (22.0 | ) | | (24.8 | ) | Subpart F income | 0.2 |
| | 7.8 |
| | 1.2 |
| Deemed repatriation of foreign income(b) | — |
| | 105.5 |
| | — |
| Undistributed earnings of foreign subsidiaries(a)(b) | 0.1 |
| | (114.8 | ) | | (0.3 | ) | Nondeductible transaction costs | — |
| | 2.0 |
| | — |
| Depletion | (1.0 | ) | | (1.8 | ) | | (2.4 | ) | Revaluation of unrecognized tax benefits/reserve requirements(c) | (0.4 | ) | | (14.4 | ) | | (0.6 | ) | Domestic manufacturing tax deduction | (0.9 | ) | | (0.5 | ) | | (2.2 | ) | Other items, net | 1.4 |
| | (0.3 | ) | | 1.6 |
| Effective income tax rate | 18.7 | % | | 3.6 | % | | 8.7 | % |
| | (a) | During 2016, 2015 and 2014, we received actual and deemed distributions of $308.4 million, $1.4 billion and $12.6 million, respectively, from various foreign subsidiaries and joint ventures, and realized an expense, net of foreign tax credits, of $67.5 million, $350.2 million and $2.8 million, respectively, related to the repatriation of these earnings, which impacted our effective tax rate. Our statutory rate is decreased by of our share of the income of JBC, a Free Zones company under the laws of the Hashemite Kingdom of Jordan. The applicable provisions of the Jordanian law, and applicable regulations thereunder, do not have a termination provision and the exemption is indefinite. As a Free Zones company, JBC is not subject to income taxes on the profits of products exported from Jordan, and currently, substantially all of the profits are from exports. This gave us a rate benefit of 7.3%, 8.2%, and 12.4% for 2016, 2015, and 2014, respectively. |
| | (b) | In prior years, we designated the undistributed earnings of substantially all of our foreign subsidiaries as indefinitely reinvested. In 2015, we were not indefinitely reinvested in a portion of earnings from legacy Rockwood entities that were part of the repatriation planning, for which a deferred tax liability of $387.0 million was established in the opening balance sheet. This liability reversed upon the completion of the repatriation with $356.2 million impacting earnings and $30.8 million from foreign exchange differences. The reversal of this liability offsets the tax amount of $327.9 million from legacy Rockwood entities included in the deemed repatriation of foreign income. |
| | (c) | During 2014, we released various tax reserves primarily related to the expiration of the applicable U.S. federal statute of limitations for 2009 through 2010 which provided a net benefit of approximately $2.5 million. In 2015, the main impact is from the release of reserves on the close of a U.S. federal audit, and lapse of statute of limitations. These releases provided a net benefit of approximately $42.7 million. |
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Deferred Income Tax Assets and Liabilities Recorded on Consolidated Balance Sheets | Deferred income tax assets and liabilities recorded on the consolidated balance sheets as of December 31, 2016 and 2015 consist of the following (in thousands): | | | | | | | | | | December 31, | | 2016 | | 2015 | Deferred tax assets: | | | | Accrued employee benefits | $ | 32,622 |
| | $ | 25,519 |
| Accrued expenses | 10,065 |
| | 24,581 |
| Operating loss carryovers | 91,934 |
| | 116,686 |
| Pensions | 96,635 |
| | 96,133 |
| Tax credit carryovers | 1,029 |
| | 2,555 |
| Other | 34,866 |
| | 35,557 |
| Gross deferred tax assets | 267,151 |
| | 301,031 |
| Valuation allowance | (69,900 | ) | | (84,137 | ) | Deferred tax assets | 197,251 |
| | 216,894 |
| | | | | Deferred tax liabilities: | | | | Depreciation | (379,161 | ) | | (364,657 | ) | Intangibles | (99,969 | ) | | (108,047 | ) | Hedge of Net Investment of Foreign Subsidiary | (51,192 | ) | | (36,537 | ) | Other | (18,536 | ) | | (16,692 | ) | Deferred tax liabilities | (548,858 | ) | | (525,933 | ) | | | | | Net deferred tax liabilities | $ | (351,607 | ) | | $ | (309,039 | ) | Classification in the consolidated balance sheets: | | | | Noncurrent deferred tax assets | $ | 61,132 |
| | $ | 75,813 |
| Noncurrent deferred tax liabilities | (412,739 | ) | | (384,852 | ) | Net deferred tax liabilities | $ | (351,607 | ) | | $ | (309,039 | ) |
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Changes in Balance of Deferred Tax Asset Valuation Allowance | Changes in the balance of our deferred tax asset valuation allowance are as follows (in thousands): | | | | | | | | | | | | | | Year Ended December 31, | | 2016 | | 2015 | | 2014 | Balance at January 1 | $ | (84,137 | ) | | $ | (30,768 | ) | | $ | (33,757 | ) | Additions(a) | (20,568 | ) | | (59,889 | ) | | (1,895 | ) | Deductions | 34,805 |
| | 6,520 |
| | 4,884 |
| Balance at December 31 | $ | (69,900 | ) | | $ | (84,137 | ) | | $ | (30,768 | ) |
| | (a) | Additions for the year ended December 31, 2015 includes $42.0 million related to the acquisition of Rockwood. |
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Reconciliation of Total Gross Liability Related to Uncertain Tax Positions | The following is a reconciliation of our total gross liability related to uncertain tax positions for 2016, 2015 and 2014 (in thousands): | | | | | | | | | | | | | | Year Ended December 31, | | 2016 | | 2015 | | 2014 | Balance at January 1 | $ | 95,715 |
| | $ | 24,969 |
| | $ | 29,143 |
| Acquisition of Rockwood | — |
| | 124,758 |
| | — |
| Divestitures(a) | (55,881 | ) | | — |
| | — |
| Additions for tax positions related to prior years | 548 |
| | 4,329 |
| | — |
| Reductions for tax positions related to prior years | (1,253 | ) | | (46,211 | ) | | (214 | ) | Additions for tax positions related to current year | 1,271 |
| | 202 |
| | 2,232 |
| Lapses in statutes of limitations/settlements | (12,591 | ) | | (6,736 | ) | | (5,057 | ) | Foreign currency translation adjustment | (2,425 | ) | | (5,596 | ) | | (1,135 | ) | Balance at December 31 | $ | 25,384 |
| | $ | 95,715 |
| | $ | 24,969 |
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| | (a) | Reclassified to Other noncurrent liabilities as a result of the indemnification of certain income tax liabilities associated with the Chemetall Surface Treatment entities sold. See Note 16, “Other Noncurrent Liabilities.” |
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