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Income Taxes
6 Months Ended
Jun. 30, 2015
Income Tax Disclosure [Abstract]  
Income Taxes

Note 14 Income Taxes

  

Effective Income Tax Rate and Income Tax Provision

Our effective income tax rate for the three months ended June 30, 2015 was 34.5% and for the six months ended June 30, 2015 was 28.1%. Our effective income tax rate benefited from a favorable earnings mix with earnings in jurisdictions with low tax rates. However, the effective tax rate was negatively impacted by foreign currency exchange losses related to Venezuelan subsidiaries of approximately $30 million for which the Company will receive no tax benefits.  As this loss was driven by the Company’s change to an alternative foreign exchange market, the tax impact of this loss is treated as a discrete item in the quarter.

Our effective income tax rate for the three months ended June 30, 2014 was 35.4% and for the six months ended June 30, 2014 was 24.8%.  Our effective income tax rate benefited from a favorable earnings mix with earnings in jurisdictions with low tax rates.  In addition, our tax rate benefited from certain favorable discrete items totaling approximately $14 million, including $7 million from a favorable tax settlement and approximately $6 million from the release of reserves related to the statute of limitations and a successful judicial verdict.  The favorable factors were partially offset by the $15 million foreign currency exchange losses related to Venezuelan subsidiaries with no tax benefit and the lapse of various U.S. tax provisions (the “Extenders”), including the research and development credit and certain foreign provisions.

 

Unrecognized Tax Benefits

During the six months ended June 30, 2015, we did not make a material change to our unrecognized tax benefits. We have not changed our policy with regard to the reporting of penalties and interest related to unrecognized tax benefits.