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						Nine Months Ended
	September 30, 2015			September 30, 2014			September 30, 2015			September 30, 2014
	(in thousands, except for percentages)
Income before income taxes	$	10,529		$	28,869		$	50,694		$	58,958
Provision for income taxes	$	(11,134	)	$	(11,619	)	$	(28,526	)	$	(20,306	)
Effective tax rate	105.75		%	40.25		%	56.27		%	34.44		%

For the three and nine months ended September 30, 2015, the Company’s effective tax rate was higher than the U.S statutory federal income tax rate of 35%, primarily due to a decrease of profits in jurisdictions with lower tax rates, discrete interest charges related to uncertain tax positions, gain on the sale of certain capital assets, nondeductible costs associated with the pending acquisition, and the cumulative impact of a higher annual effective tax rate.

For the three and nine months ended September 30, 2014, the significant components of the tax provision related to jurisdictions that experienced operating profits. The Company’s effective tax rate for the nine months ended September 30, 2014 was lower than the statutory federal income tax rate of 35%, primarily due to income recognized in lower tax jurisdictions.

At September 30, 2015 and December 31, 2014, the Company had $87.4 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.