Note 15—Income Taxes


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2017			2016			2017			2016
Provision for income taxes	$	(63.6)		$	(75.3)		$	(134.6)		$	(139.2)
Effective tax rate		20.1	%		26.5	%		21.9	%		27.5	%

As a result of the adoption of the new stock-based compensation standard (ASU 2016-09), option exercise activity had the impact of lowering our effective tax rate by approximately 660 basis points and 470 basis points for the second quarter and first six months of 2017, respectively. The adoption of ASU 2016-09 was applied prospectively and therefore, there was no such impact to the provision for income taxes for the second quarter and first six months of 2016. Refer to Note 2 herein for further information regarding the impact associated with the adoption of this new accounting standard. The effective tax rate for the first six months of 2016 included the impact of acquisition-related expenses incurred during the first quarter of 2016, which increased the effective tax rate by approximately 100 basis points.

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 2013 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 June 30, 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 $133.7, 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 $5.7.