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10-K
ICONIX BRAND GROUP, INC. filed this Form 10-K on 03/28/2019
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As of December 31, 2018, the Company has finalized its analysis of the new tax law and its calculations, and accounted for the impact in its income tax balances. In finalizing the analysis, the Company concluded that no further adjustments were needed to be recorded, and the analysis of the impact of the new tax law is now complete.

The Company’s consolidated effective tax rate from continuing operations was -7.9% and 14.7% for the year ended December 31, 2018 and December 31, 2017, respectively.  The decrease in the effective tax rate for the FY 2018 as compared to the FY 2017 is primarily a result of foreign tax expense calculated in local jurisdictions where there is no net operating losses available to offset the current tax liability, partially offset by a tax benefit resulting from the tax impact of impairment expenses recorded on indefinite lived intangible assets.  

Management believes that an adequate provision has been made for any adjustments that may result from tax examinations; however, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company's tax audits are resolved in a manner not consistent with management's expectations, the Company could be required to adjust its provision for income tax in the period such resolution occurs.

Pre-tax book loss for FY 2018 and FY 2017 were as follows:

 

 

 

FY 2018

 

 

FY 2017

 

Domestic

 

$

(119,031

)

 

$

(575,547

)

Foreign

 

 

35,900

 

 

 

(77,885

)

Total pre-tax loss

 

$

(83,131

)

 

$

(653,432

)

 

The income tax provision (benefit) for federal, and state and local income taxes in the consolidated statement of operations consists of the following:

 

 

 

Year Ended

December 31,

2018

 

 

Year Ended

December 31,

2017

 

Current:

 

 

 

 

 

 

 

 

Federal

 

$

(609

)

 

$

(1,152

)

State and local

 

 

(61

)

 

 

986

 

Foreign

 

 

9,212

 

 

 

8,358

 

Total current

 

$

8,542

 

 

$

8,192

 

Deferred:

 

 

 

 

 

 

 

 

Federal

 

 

(4,950

)

 

 

(93,376

)

State and local

 

 

(1,967

)

 

 

(93

)

Foreign

 

 

4,913

 

 

 

(10,700

)

Total deferred

 

 

(2,004

)

 

 

(104,169

)

Total benefit

 

$

6,538

 

 

$

(95,977

)

 

As of December 31, 2018, the Company is not indefinitely reinvested in any foreign earnings.

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