Rendering

Component: (Network and Table)
Network
100360 - Disclosure - Income Taxes (Tables)
(http://www.affiniongroup.com/20161231/taxonomy/role/DisclosureIncomeTaxesTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Reporting Entity [Axis]0001404624 (http://www.sec.gov/CIK)
Income Tax Disclosure [Abstract]Period [Axis]
2016-01-01 - 2016-12-31
Income Tax Disclosure [Abstract]
 
Summary of Income Tax Expense

The income tax benefit (expense) consisted of the following:  

 

 

 

For the Year Ended December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

 

 

(in millions)

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

0.4

 

 

$

(0.4

)

 

$

—

 

State

 

 

(0.4

)

 

 

(1.0

)

 

 

(0.4

)

Foreign

 

 

(5.0

)

 

 

(3.3

)

 

 

(4.5

)

 

 

 

(5.0

)

 

 

(4.7

)

 

 

(4.9

)

Deferred:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

(3.1

)

 

 

(3.1

)

 

 

40.9

 

State

 

 

0.1

 

 

 

0.7

 

 

 

1.9

 

Foreign

 

 

0.6

 

 

 

1.2

 

 

 

0.6

 

 

 

 

(2.4

)

 

 

(1.2

)

 

 

43.4

 

Total income tax benefit (expense)

 

$

(7.4

)

 

$

(5.9

)

 

$

38.5

 

 

  
Schedule of Pre-Tax Income (Loss) for Domestic and Foreign Operations Before Non-controlling Interests

Pre-tax income (loss) for domestic and foreign operations before non-controlling interests consisted of the following:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

 

 

(in millions)

 

Domestic

 

$

37.7

 

 

$

192.0

 

 

$

(379.7

)

Foreign

 

 

(14.0

)

 

 

(50.2

)

 

 

(87.0

)

Pre-tax income (loss)

 

$

23.7

 

 

$

141.8

 

 

$

(466.7

)

 

  
Schedule of Deferred Income Tax Assets and Liabilities

Deferred income tax assets and liabilities consisted of the following:  

 

 

 

December 31,

 

 

 

2016 (a)

 

 

2015

 

 

 

(in millions)

 

Current deferred income tax assets:

 

 

 

 

 

 

 

 

Accrued expenses and deferred revenue

 

 

 

 

 

$

28.4

 

Provision for doubtful accounts

 

 

 

 

 

 

0.1

 

Other

 

 

 

 

 

 

20.9

 

Current deferred income tax assets

 

 

 

 

 

 

49.4

 

Current deferred income tax liabilities:

 

 

 

 

 

 

 

 

Profit-sharing receivables from insurance carriers

 

 

 

 

 

 

(3.1

)

Accrued expenses

 

 

 

 

 

 

(1.4

)

Prepaid expenses

 

 

 

 

 

 

(5.2

)

Current deferred income tax liabilities

 

 

 

 

 

 

(9.7

)

Valuation allowance

 

 

 

 

 

 

(39.5

)

Current net deferred income tax asset

 

 

 

 

 

$

0.2

 

Non-current deferred income tax assets:

 

 

 

 

 

 

 

 

Net operating loss carryforwards

 

$

297.0

 

 

$

243.5

 

State net operating loss carryforwards

 

 

26.1

 

 

 

16.4

 

Depreciation and amortization

 

 

875.8

 

 

 

870.1

 

Accrued expenses and deferred revenue

 

 

30.3

 

 

 

—

 

Prepaid expenses

 

 

0.5

 

 

 

—

 

Provision for doubtful accounts

 

 

0.1

 

 

 

—

 

Other

 

 

20.5

 

 

 

27.5

 

Federal tax credits

 

 

—

 

 

 

0.4

 

Non-current deferred income tax assets

 

 

1,250.3

 

 

 

1,157.9

 

Non-current deferred income tax liabilities:

 

 

 

 

 

 

 

 

Other

 

 

(2.7

)

 

 

(5.7

)

Accrued expenses and deferred revenue

 

 

(0.6

)

 

 

—

 

Profit-sharing receivables from insurance carriers

 

 

(0.9

)

 

 

—

 

Depreciation and amortization

 

 

(719.5

)

 

 

(659.6

)

Non-current deferred income tax liabilities

 

 

(723.7

)

 

 

(665.3

)

Valuation allowance

 

 

(551.0

)

 

 

(526.3

)

Non-current net deferred income tax liability (net of non-current deferred

   income tax asset included in other non-current assets on the 2016

   and 2015 consolidated balance sheet of $2.5 and $2.2, respectively)

 

$

(24.4

)

 

$

(33.7

)

 

(a)

The Company adopted as of the beginning of the second quarter of 2016 on a prospective basis the new FASB ASU 2015-17, which requires entities to present deferred tax assets and deferred tax liabilities as non-current assets and liabilities in a classified balance sheet. The December 31, 2015 financial statements were not retrospectively adjusted. The adoption of this standard did not have a material impact on our financial statements.

  
Schedule of Effective Income Tax Rate Differs from U.S. Federal Statutory Rate

The effective income tax rate differs from the U.S. federal statutory rate as follows:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

Federal statutory rate

 

 

35.0

%

 

 

35.0

%

 

 

35.0

%

State and local income taxes, net of federal expense

 

 

(3.1

)

 

 

12.3

 

 

 

2.9

 

Change in valuation allowance and other

 

 

(0.1

)

 

 

(170.1

)

 

 

(20.2

)

Taxes on foreign operations at rates different than U.S. federal rates

 

 

18.1

 

 

 

1.6

 

 

 

(1.0

)

Foreign tax credits

 

 

—

 

 

 

—

 

 

 

0.6

 

Impairment of goodwill and other long-lived assets

 

 

—

 

 

 

8.8

 

 

 

(8.7

)

Impact of debt exchanges and subscription rights offering

 

 

(13.7

)

 

 

(57.3

)

 

 

—

 

Foreign taxes deduction

 

 

(6.4

)

 

 

—

 

 

 

—

 

Foreign tax credit net operating loss reclassification

 

 

—

 

 

 

17.5

 

 

 

—

 

Federal net operating loss adjustments

 

 

—

 

 

 

145.9

 

 

 

—

 

Stock compensation

 

 

—

 

 

 

7.8

 

 

 

—

 

Prior year accrual and adjustments

 

 

0.6

 

 

 

2.1

 

 

 

—

 

Non-deductible expenses

 

 

0.6

 

 

 

0.6

 

 

 

(0.3

)

 

 

 

31.0

%

 

 

4.2

%

 

 

8.3

%

 

  
Schedule of Reconciliation of Beginning and Ending Amount of Tax Reserves for Uncertain Tax Positions

A reconciliation of the beginning and ending amount of tax reserves for uncertain tax positions for the years ended December 31, 2016, 2015 and 2014 is as follows:  

 

 

 

For the Year Ended December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

 

 

(in millions)

 

Unrecognized tax benefits – January 1

 

$

(4.4

)

 

$

(3.7

)

 

$

5.2

 

Gross increase – prior period tax positions

 

 

11.3

 

 

 

—

 

 

 

—

 

Gross decrease – lapse in statute of limitations

 

 

—

 

 

 

—

 

 

 

—

 

Gross increase – current period tax positions

 

 

0.2

 

 

 

0.4

 

 

 

0.9

 

Gross decrease – current period tax positions

 

 

(0.5

)

 

 

(1.1

)

 

 

(9.8

)

Unrecognized tax benefits – December 31

 

$

6.6

 

 

$

(4.4

)

 

$

(3.7

)