Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v3.7.0.1
Income Taxes
6 Months Ended
Jun. 30, 2017
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES
The following table presents details related to our income taxes:
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2017
 
2016
 
2017
 
2016
Income (loss) from continuing operations before income taxes
$
9.0

 
$
11.4

 
$
(0.9
)
 
$
9.4

Income tax expense
3.6

 
4.4

 
1.5

 
4.9

Effective tax rate
40.0
%
 
38.6
%
 
(166.7
)%
 
52.1
%

The effective tax rate for the second quarter of 2017 was higher versus the same period in 2016, primarily due to the geographic distribution of earnings. We recorded income tax expense on a pretax loss for the six months ended June 30, 2017 due to unbenefitted foreign 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 was routinely audited by U.S. federal, state and local, and non-U.S. taxing authorities. Accordingly, AFI regularly assesses 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 2017 to AFI's unrecognized tax benefits as of December 31, 2016.
As of June 30, 2017, we consider foreign unremitted earnings to be permanently reinvested.