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Income Taxes
9 Months Ended
Sep. 30, 2016
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
For the three and nine months ended September 30, 2016, income tax expense was $21,157 and $119,090, respectively, representing an effective tax rate of 24% and 31%, respectively. The effective tax rate differs from the federal statutory rate of 35% due primarily to state and local income tax expense of $788 and $6,123, tax benefit of $3,443 and $12,364 from foreign subsidiary earnings indefinitely reinvested outside the U.S., tax benefit of $6,651 and $3,939 relating to uncertain tax positions (including accrued interest), tax benefit from the domestic production activities deduction of $2,784 and $12,519 and tax expense of $2,320 and $7,021 resulting from an increase in the valuation allowances for foreign and local taxes for the three and nine months ended September 30, 2016, respectively. The tax benefit relating to a reduction in uncertain tax positions is primarily due to a lapse of the applicable statute of limitations.
For the three and nine months ended September 30, 2015, income tax expense was $43,358 and $155,609, respectively, representing an effective tax rate of 36% and 35%, respectively. The effective tax rate differs from the federal statutory rate of 35% due primarily to state and local income tax expense of $2,775 and $9,335, tax benefit of $409 and $6,610 from foreign subsidiary earnings indefinitely reinvested outside the U.S., tax benefit from the domestic production activities deduction of $4,332 and $14,515 and tax expense of $3,261 and $10,049 resulting from an increase in the valuation allowances for foreign and local taxes for the three and nine months ended September 30, 2015, respectively.
At September 30, 2016, the Company had foreign tax credit carry forwards of approximately $42,000, expiring on various dates from 2016 through 2026. For the nine months ended September 30, 2016, excess tax benefits of $764 relating to share-based compensation awards and $1,207 relating to amortization of tax deductible second component goodwill were realized as a reduction in tax liability (as determined on a ‘with-and-without’ approach).