The below chart provides a reconciliation between our reported effective tax rate and the EAETR.



	Three Months Ended June 30
	2016							2015
(in Millions)	Before Tax		Tax			Effective Tax Rate % Impact		Before Tax		Tax			Effective Tax Rate % Impact
Continuing operations	$	104.8	$	32.0		30.5	%	$	75.9	$	17.8		23.5	%

Discrete items:
Acquisition-related charges ⁽¹⁾	—		—					21.0		7.5
Currency remeasurement ⁽²⁾	4.9		(1.0		)			17.7		6.7
Other discrete items ⁽³⁾	50.7		2.5					13.6		1.9
Tax only discrete items ⁽⁴⁾	—		(0.3		)			—		(2.1		)
Total discrete items	$	55.6	$	1.2				$	52.3	$	14.0

Continuing operations, before discrete items	$	160.4	$	33.2				$	128.2	$	31.8
Quarterly effect of changes in the EAETR ⁽⁵⁾						20.7	%						24.8	%



	Six Months Ended June 30
	2016							2015
(in Millions)	Before Tax		Tax			Effective Tax Rate % Impact		Before Tax			Tax			Effective Tax Rate % Impact
Continuing operations	$	190.5	$	62.9		33.0	%	$	(34.3	)	$	(31.3	)	91.3	%

Discrete items:
Acquisition-related charges ⁽¹⁾	—		—					211.7			77.8
Currency remeasurement ⁽²⁾	7.2		(0.5		)			24.0			3.9
Other discrete items⁽³⁾	101.7		3.9					35.4			9.2
Tax only discrete items ⁽⁴⁾	—		(3.2		)			—			0.9
Total discrete items	$	108.9	$	0.2				$	271.1		$	91.8

Continuing operations, before discrete items	$	299.4	$	63.1				$	236.8		$	60.5
Year-to-date effect of changes in the EAETR ⁽⁵⁾						21.1	%							25.5	%

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(1)

Due to the nature of acquisition-related charges incurred during 2016, these charges are not treated discretely in accordance with GAAP. As such, the amounts differ from total acquisition-related charges as presented in Note 3. Acquisition-related charges for the three and six months ended June 30, 2015 are primarily taxed at domestic tax rates resulting in a material tax benefit. The acquisition-related charges are comprised of legal and professional fees and a loss incurred from hedging activity associated with the purchase price of Cheminova. See Note 3 for more information. As noted in footnote (2), below, hedge gains or losses are accounted for discretely for GAAP purposes.


(2)	Represents transaction gains or losses for currency remeasurement offset by associated hedge gains or losses, both of which are accounted for discretely in accordance with GAAP. Certain transaction gains or losses are considered non-taxable permanent items, while offsetting hedge gains or losses are taxable.

(3)

In accordance with GAAP, subsidiaries for which a full valuation allowance has been provided generally are not accounted for as a component of the EAETR. For the three and six months ended June 30, 2016, the Other discrete items component of the EAETR reconciliation primarily relates to the discrete accounting for these pretax losses. For the three and six months ended June 30, 2015, the Other discrete items primarily related to restructuring and IPR&D.

(4)

For the three and six months ended June 30, 2016, Tax only discrete items is comprised primarily of the tax effect of currency remeasurement associated with foreign statutory operations, changes in realizability or measurement of certain deferred tax assets, and changes in prior year estimates of subsidiary tax liabilities. For the three and six months ended June 30, 2015, this component was comprised primarily of currency remeasurement associated with foreign statutory operations and changes in realizability or measurement of certain deferred tax assets.


(5)	The decrease in the EAETR for the three and six months ended June 30, 2016 is primarily driven by lower current year projected domestic earnings. Further, domestic tax legislation enacted during the fourth quarter of 2015 has decreased the amount of projected domestic tax expense for the three and six months ended June 30, 2016, as compared to these periods in the prior year.