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Income Taxes
9 Months Ended
Sep. 30, 2015
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
Our effective income tax rate was 43.5% and 28.6% in the third quarter of 2015 and 2014, respectively. Our effective income tax rate was 35.1% and 30.0% for the nine months ended September 30, 2015 and 2014, respectively. In the third quarter of 2015, our income tax rate was unfavorably impacted by $1.9 million related to the finalization of 2014 income tax year returns and a change in the mix of earnings attributable to higher-taxing jurisdictions. In both the third quarter of 2015, as well as the third quarter of 2014, our income tax rate benefited from favorable tax rates on certain foreign business activity as compared to our domestic statutory tax rate of 35.0%.
We are subject to income taxes in the United States and in numerous foreign jurisdictions.  No provision is made for U.S. income taxes on the undistributed earnings of substantially all of our wholly-owned foreign subsidiaries because such earnings are indefinitely reinvested in those companies. If circumstances change and it becomes apparent that some or all of the undistributed earnings of our wholly-owned foreign subsidiaries will not be indefinitely reinvested, a provision for the tax consequences, if any, will be recorded in the period in which the circumstances change.
Our accounting policy is to account for interest expense and penalties related to uncertain tax positions as income tax expense.  As of September 30, 2015, we have approximately $1.3 million of accrued interest related to uncertain tax positions included in the $12.7 million of unrecognized tax benefits, $12.6 million of which, if recognized, would impact the effective tax rate. It is possible that up to $3.9 million of our currently unrecognized tax benefits could be recognized within 12 months as a result of projected resolutions of worldwide tax disputes or expiration of the statute of limitations.
We are subject to taxation in the U.S. and various state and foreign jurisdictions. Our tax years from 2011 through 2014 are subject to examination by these various tax authorities. With few exceptions, we are no longer subject to U.S. federal, state, local and foreign examinations by tax authorities for years before 2011.