Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v3.4.0.3
Income Taxes
3 Months Ended
Mar. 31, 2016
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES
 
Three Months Ended March 31,
(Dollars in millions)
2016
 
2015
Loss from continuing operations before income taxes:
$
(4.7
)
 
$
(3.2
)
Income tax (benefit) expense
(0.4
)
 
0.7

Effective tax rate
8.5
%
 
(21.9
)%

We recorded an income tax benefit for the first quarter of 2016 compared to an income tax expense in the same period in 2015, primarily due to lower unbenefited foreign operating losses.
Upon audit, taxing authorities may challenge all or part of an uncertain income tax position. While AFI has no history of tax audits on a stand-alone basis, AWI is routinely audited by U.S. federal, state and local, and non-U.S. taxing authorities. Accordingly, AWI and AFI regularly assess the outcome of potential examinations in each of the taxing jurisdictions when determining the adequacy of the amount of unrecognized tax benefit recorded. We do not expect to record any material changes during 2016 to AFI's unrecognized tax benefits as of December 31, 2015.
Our non-current tax liability includes a $11.4 million liability related to our former DLW subsidiary. This liability remained with AWI at Separation.
As of March 31, 2016, we consider foreign unremitted earnings to be permanently reinvested.