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Income Taxes
9 Months Ended
Sep. 30, 2014
Income Taxes [Abstract]  
Income Taxes
Income Taxes
The effective tax rate for the nine months ended September 30, 2014 reflects the recognition of an income tax benefit of $11.4 million related to previously incurred expenses for the proposed merger with Publicis. On May 8, 2014, the proposed merger with Publicis was terminated. Prior to the termination of the proposed merger, the majority of the merger costs were capitalized for income tax purposes and the related tax benefits were not recorded. Because the proposed merger was terminated, the merger costs were no longer required to be capitalized for income tax purposes.
In connection with the conversion of the 2032 Notes (see Note 5), we reclassified $66.2 million, representing the excess of the accreted value of the notes for income tax purposes over the conversion value, from long-term deferred tax liability to current taxes payable. In addition, we reclassified $32.2 million, representing the difference between the issue price of the notes and the conversion value, from long-term deferred tax liability to additional paid-in capital.
At September 30, 2014, our unrecognized tax benefits were $139.3 million. Of this amount, approximately $58.5 million would affect our effective tax rate upon resolution of the uncertain tax positions.