Income Taxes	9 Months Ended
Sep. 30, 2015
Income Taxes
Income Taxes	12.Income Taxes The company’s tax rate was 29.6% and 27.3% for the third quarter of 2015 and 2014, respectively, and 24.9% and 29.1% for the first nine months of 2015 and 2014, respectively. The changes in the company’s tax rate for the third quarter and first nine months of 2015 compared to third quarter and the first nine months of 2014 were primarily driven by the tax rate impact of special gains and charges and discrete tax items, with lesser impacts from global tax planning actions and favorable geographic income mix. The company recognized discrete tax net benefits of $19.2 million during the third quarter of 2015 and $56.0 million during the first nine months of 2015. Third quarter net benefits related to discrete items were driven primarily by the release of valuation allowances, as discussed further below, and a refund claim for taxes paid in a prior period resulting from updated IRS regulations. These benefits were offset partially by recognizing adjustments from filing the company’s 2014 U.S. federal income tax return. The company had valuation allowances on certain deferred tax assets of $39 million and $74 million at September 30, 2015 and December 31, 2014, respectively. During the third quarter of 2015, the company determined sufficient positive income trends existed to conclude it was more likely than not it would be able to realize the benefits of the net operating losses and other deferred tax assets within certain underlying foreign entities for which a valuation allowance had been recorded, thus resulting in a $17 million valuation allowance release. The reduction in the valuation allowance from year end 2014 to third quarter 2015 was also driven by foreign currency translation. Net benefits related to discrete tax items for the first nine months of 2015 were also impacted by the ability to recognize a worthless stock deduction for the tax basis in a wholly-owned domestic subsidiary and by the change to a deferred tax liability resulting from the Naperville facility transaction discussed further in Note 5. The company recognized net benefits related to discrete tax items of $1.9 million during the third quarter of 2014 and net expense related to discrete tax items of $16.3 million during the first nine months of 2014. Third quarter 2014 net benefits related to discrete tax items were driven primarily by recognizing adjustments from filing the company’s 2013 U.S. federal income tax return, offset partially by the net impact of foreign audit settlements and adjustments. Net expense related to discrete tax items for the first nine months of 2014 was also impacted by an update to non-current tax liabilities for global tax audits, an adjustment related to the re-characterization of intercompany payments between the company’s U.S. and foreign affiliates, a rate differential on certain prior year shared costs and the remeasurement of certain deferred tax assets and liabilities resulting from a change in the state tax rate for certain entities following the merger of Champion operations, which collectively more than offset the net change of valuation allowances based on the realizability of foreign deferred tax assets and benefits from other foreign country audit settlements.

12.Income Taxes

The company’s tax rate was 29.6% and 27.3% for the third quarter of 2015 and 2014, respectively, and 24.9% and 29.1% for the first nine months of 2015 and 2014, respectively. The changes in the company’s tax rate for the third quarter and first nine months of 2015 compared to third quarter and the first nine months of 2014 were primarily driven by the tax rate impact of special gains and charges and discrete tax items, with lesser impacts from global tax planning actions and favorable geographic income mix.

The company recognized discrete tax net benefits of $19.2 million during the third quarter of 2015 and $56.0 million during the first nine months of 2015.

Third quarter net benefits related to discrete items were driven primarily by the release of valuation allowances, as discussed further below, and a refund claim for taxes paid in a prior period resulting from updated IRS regulations. These benefits were offset partially by recognizing adjustments from filing the company’s 2014 U.S. federal income tax return.

The company had valuation allowances on certain deferred tax assets of $39 million and $74 million at September 30, 2015 and December 31, 2014, respectively. During the third quarter of 2015, the company determined sufficient positive income trends existed to conclude it was more likely than not it would be able to realize the benefits of the net operating losses and other deferred tax assets within certain underlying foreign entities for which a valuation allowance had been recorded, thus resulting in a $17 million valuation allowance release. The reduction in the valuation allowance from year end 2014 to third quarter 2015 was also driven by foreign currency translation.

Net benefits related to discrete tax items for the first nine months of 2015 were also impacted by the ability to recognize a worthless stock deduction for the tax basis in a wholly-owned domestic subsidiary and by the change to a deferred tax liability resulting from the Naperville facility transaction discussed further in Note 5.

The company recognized net benefits related to discrete tax items of $1.9 million during the third quarter of 2014 and net expense related to discrete tax items of $16.3 million during the first nine months of 2014.

Third quarter 2014 net benefits related to discrete tax items were driven primarily by recognizing adjustments from filing the company’s 2013 U.S. federal income tax return, offset partially by the net impact of foreign audit settlements and adjustments.

Net expense related to discrete tax items for the first nine months of 2014 was also impacted by an update to non-current tax liabilities for global tax audits, an adjustment related to the re-characterization of intercompany payments between the company’s U.S. and foreign affiliates, a rate differential on certain prior year shared costs and the remeasurement of certain deferred tax assets and liabilities resulting from a change in the state tax rate for certain entities following the merger of Champion operations, which collectively more than offset the net change of valuation allowances based on the realizability of foreign deferred tax assets and benefits from other foreign country audit settlements.