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Income Taxes
 3 Months Ended
Mar. 31, 2016
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
Income tax provisions for income from continuing operations were $10.1 million and $14.6 million during the three months ended March 31, 2016 and 2015, respectively.
The effective tax rates for the respective periods are shown below:
 
Three Months Ended 
 March 31,
 
2016
 
2015
Federal provision
35.0
 %
 
35.0
 %
State provision
6.2
 %
 
8.2
 %
State benefit
(2.2
)%
 
(2.9
)%
Tax reserves
0.0
 %
 
0.1
 %
International benefit(1)
(9.8
)%
 
(6.0
)%
Permanent items(2)
0.8
 %
 
0.2
 %
Other(3)
(4.6
)%
 
0.0
 %
Effective rate
25.4
 %
 
34.6
 %
________________________
(1)
Relates primarily to lower tax rates on income attributable to international operations.
(2)
Represents a provision for nondeductible items.
(3)
Includes the effect of discrete items and an IRS audit settlement.
The Company’s subsidiary in Costa Rica is operating under a 100% tax holiday through December 31, 2018 and a 50% tax holiday for the subsequent four years. The impact of the tax holiday in Costa Rica for the three months ended March 31, 2016 and 2015, was immaterial.
The Company had gross unrecognized tax benefits, inclusive of penalties and interest, of $24.2 million and $58.5 million at March 31, 2016 and December 31, 2015, respectively. These unrecognized tax benefits, if recognized, would result in a net tax benefit of $10.6 million and $14.9 million as of March 31, 2016 and December 31, 2015, respectively. The reduction in gross unrecognized tax benefits was due to an IRS audit settlement.
During the three months ended March 31, 2016, the Company did not provide for U.S. income taxes or foreign withholding taxes on the quarterly undistributed earnings from operations of its subsidiaries operating outside of the United States. Undistributed pre-tax income of these subsidiaries during the three months ended March 31, 2016, was approximately $17.1 million.