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Income Taxes
6 Months Ended
Jun. 30, 2015
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
For interim tax reporting we estimate our annual effective tax rate and apply it to our year to date ordinary income. Jurisdictions where no tax benefit can be recognized due to a valuation allowance are excluded from the estimated annual effective tax rate. The impact of including these jurisdictions on the quarterly effective rate calculation could result in a higher or lower effective tax rate during a particular quarter due to the mix and timing of actual earnings versus annual projections. The tax effects of certain unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur.
We reported income tax expense of $47 million and $46 million in the three month periods ended June 30, 2015 and 2014, respectively. The tax expense recorded in the second quarter of 2015 included a net tax expense of $2 million primarily relating to prior year intercompany transactions and tax adjustments to prior year income tax estimates.
We reported income tax expense of $88 million and $86 million in the six month periods ended June 30, 2015 and 2014, respectively. The tax expense recorded in the first six months of 2015 included $3 million primarily relating to prior year intercompany transactions and tax adjustments to prior year income tax estimates. The tax expense recorded in the first six months of 2014 included a net tax benefit of $1 million for tax adjustments primarily relating to changes to uncertain tax positions and prior year income tax estimates.
We believe it is reasonably possible that up to $6 million in unrecognized tax benefits related to the expiration of foreign statute of limitations and the conclusion of income tax examinations may be recognized within the coming year.