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Income Taxes
3 Months Ended
Mar. 31, 2017
Income Taxes  
Income Taxes

Note 15—Income Taxes

 

The provision for income taxes for the first quarter of 2017 was at an effective tax rate of 23.8%, which included the effect of the adoption of ASU 2016-09.  The provision for income taxes for the first quarter of 2016 was at an effective tax rate of 28.7%.  The effective tax rate for the first quarter of 2016 included the effect of acquisition-related expenses incurred during such period, which had the impact of increasing the effective tax rate by 220 basis points.    The decrease in the effective tax rate in the first quarter of 2017 primarily resulted from both the adoption of ASU 2016-09 in 2017, as well as the effect of the acquisition-related expenses incurred in 2016.  The adoption of ASU 2016-09 was applied prospectively and therefore, there was no such impact to the provision for income taxes for the first quarter of 2016.   

 

The Company operates in the U.S. and numerous foreign taxable jurisdictions, and at any point in time has numerous audits underway at various stages of completion.  With few exceptions, the Company is subject to income tax examinations by tax authorities for the years 2011 and after.  The Company is generally not able to precisely estimate the ultimate settlement amounts or timing until the close of an audit. The Company evaluates its tax positions and establishes liabilities for uncertain tax positions that may be challenged by tax authorities and may not be fully sustained, despite the Company’s belief that the underlying tax positions are fully supportable.  As of March 31, 2017, the amount of the liability for unrecognized tax benefits, including penalties and interest, which if recognized would impact the effective tax rate, was approximately $139.8, which is included in Other long-term liabilities in the accompanying Condensed Consolidated Balance Sheets.  Unrecognized tax benefits are reviewed on an ongoing basis and are adjusted for changing facts and circumstances, including progress of tax audits and the closing of statutes of limitation.  Based on information currently available, management anticipates that over the next twelve-month period, audit activity could be completed and statutes of limitation may close relating to existing unrecognized tax benefits of approximately $11.3.