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Income Taxes
3 Months Ended
Mar. 31, 2017
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

We recorded income tax expense at an effective rate of 33.6% for the three months ended March 31, 2017, as compared to an effective rate of 39.8% for the three months ended March 31, 2016. The 2017 rate was favorably impacted by the adoption of the new accounting guidance for share-based payments effective January 1, 2017 (see Note 3 to the Consolidated Financial Statements for further information) and the tax benefit related to the favorable settlement of an audit. The 33.6% effective tax rate in the quarter was lower than the United States Federal statutory rate of 35% due to these items, and we currently expect an annual effective tax rate of approximately 36% to 37% due primarily to the French business tax, expected repatriations, valuation allowances and other permanent items.

As of March 31, 2017, we had gross unrecognized tax benefits related to various tax jurisdictions, including interest and penalties, of $36.7 that would favorably affect the effective tax rate if recognized. As of December 31, 2016, we had gross unrecognized tax benefits related to various tax jurisdictions, including interest and penalties, of $44.0. The reduction in this amount is the result of the settlement of the audit noted above resulting in the recognition of tax benefits claimed in the years subject to examination. We do not expect our unrecognized tax benefits to change significantly over the next 12 months.
 
We conduct business globally in various countries and territories. We are routinely audited by the tax authorities of the various tax jurisdictions in which we operate. Generally, the tax years that could be subject to examination are 2009 through 2016 for our major operations in France, Germany, Japan, the United Kingdom and the United States. As of March 31, 2017, we are subject to tax audits in Austria, Canada, Denmark, Germany, Italy, Portugal and the United States. We believe that the resolution of these audits will not have a material impact on earnings.