XML 46 R14.htm IDEA: XBRL DOCUMENT v3.2.0.727
Income Taxes
6 Months Ended
Jun. 30, 2015
Income Taxes [Abstract]  
Income Taxes
Income Taxes
Our effective tax rate for the six months ended June 30, 2015 increased to 32.8% from 32.2% for the six months ended June 30, 2014. The effective tax rate for the six months ended June 30, 2014 reflects the recognition of an income tax benefit of approximately $11 million related to previously incurred expenses for the proposed merger with Publicis Groupe S.A. (“Publicis”). On May 8, 2014, the proposed merger was terminated. Prior to the termination of the merger, the majority of the merger costs, which were incurred in 2013, were capitalized for income tax purposes and the related tax benefits were not recorded. Because the merger was terminated, the merger costs were no longer required to be capitalized for income tax purposes. Excluding the income tax benefit of $11 million related to the proposed merger, the effective tax rate for the first six months of 2014 was 33.5%. The decrease in the effective tax rate for the six months ended June 30, 2015 from the effective tax rate for the six months ended June 30, 2014 excluding the income tax benefit related to the proposed merger, is primarily due to a legal entity restructuring of our European operations. As a result of the reorganization, a certain portion of the foreign earnings in the affected countries is subject to lower effective tax rates.
At June 30, 2015, our net unrecognized tax benefits were $62.0 million. Of this amount, approximately $51.1 million would affect our effective tax rate upon resolution of the uncertain tax positions.