INCOME TAXES

The Company estimates its annual effective tax rate at the end of each quarter. In making these estimates, the Company considers, among other things, annual pre-tax income, the geographic mix of pre-tax income and the application and interpretations of tax laws, treaties and judicial developments, as well as possible outcomes of tax audits.

The following table presents the provision for income taxes and the effective tax rates:



	Three Months Ended
	March 31, 2015			March 31, 2014
	(in thousands, except for percentages)
Income before income taxes	$	24,245		$	4,832
Provision for income taxes	$	(7,699	)	$	(2,666	)
Effective tax rate	31.76		%	55.17		%

For the three months ended March 31, 2015, the Company’s effective tax rate was lower than the U.S statutory federal income tax rate of 35%, primarily due to income recognized in lower tax rate foreign jurisdictions. For the three months ended March 31, 2014, the Company's effective tax rate was higher than the U.S. statutory federal income tax rate of 35%, primarily due to discrete interest charges related to foreign audit and withholding tax reserves, and the ratio of these items to worldwide operating income.

At March 31, 2015 and December 31, 2014, the Company had $86.2 million and $88.1 million of unrecognized tax benefits, respectively, which, if recognized, would affect the effective tax rate.

The timing for the resolution and closure of tax audits is highly unpredictable. Given the uncertainty, it is reasonably possible that certain tax audits may be concluded within the next 12 months that could materially impact the balance of our gross unrecognized tax benefits. An estimate of the range of increase or decrease that could occur in the next twelve months cannot be made. However, the estimated impact to tax expense and net income from the resolution and closure of tax exams is not expected to be significant within the next 12 months.