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TAXES
9 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
TAXES
TAXES
In accordance with GAAP, we estimate the full-year effective tax rate from continuing operations and apply this rate to our year-to-date income from continuing operations. In addition, we separately calculate the tax impact of unusual or infrequent items, if any. The tax impacts of such unusual or infrequent items are treated discretely in the quarter in which they occur. Our effective tax rate was 12.0% and 73.0% during the three months ended December 31, 2016 and 2015, respectively, and 10.2% and (27.7)% during the nine months ended December 31, 2016 and 2015, respectively. The effective tax rate for the three and nine months ended December 31, 2016 was impacted by valuation allowances against future realization of foreign tax credits. Additionally, we continue to value against net operating losses in certain foreign jurisdictions.
The relationship between our provision for or benefit from income taxes and our pre-tax book income can vary significantly from period to period considering, among other factors, (a) the overall level of pre-tax book income, (b) changes in the blend of income that is taxed based on gross revenues or at high effective tax rates versus pre-tax book income or at low effective tax rates and (c) our geographical blend of pre-tax book income. Consequently, our income tax expense does not change proportionally with our pre-tax book income. Significant decreases in our pre-tax book income typically result in higher effective tax rates, while significant increases in pre-tax book income can lead to lower effective tax rates, subject to the other factors impacting income tax expense noted above. The increase in our effective tax rate excluding discrete items for the three and nine months ended December 31, 2016 compared to the three and nine months ended December 31, 2015 primarily related to an increase in the blend of earnings taxed in relatively high taxed jurisdictions versus low taxed jurisdictions. Additionally, we increased our valuation allowance by $3.7 million and $9.5 million for the three months ended December 31, 2016 and 2015, respectively, and $19.3 million and $15.0 million for the nine months ended December 31, 2016 and 2015, respectively, which also increased our effective tax rate.
As of December 31, 2016, there were $1.3 million of unrecognized tax benefits, all of which would have an impact on our effective tax rate if recognized.