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Income Taxes
9 Months Ended
Sep. 30, 2016
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The effective income tax rate of 11.4% and 31.0% for the three and nine months ended September 30, 2016 differed from the U.S. federal statutory rate of 35% primarily due to an insurance recovery for breaches of representations and warranties primarily related to warranty costs that resulted in an adjustment to our purchase price of AirSep shares for tax purposes and offset by losses incurred by certain of the Company’s Chinese operations for which no benefit was recorded. The effective income tax rate of 58.8% and 36.5% for the three and nine months ended September 30, 2015 differed from the U.S. federal statutory rate of 35% primarily due to the addition of a$1,607 valuation allowance on certain accumulated tax loss balances and the effect of losses incurred by certain of the Company’s international entities operating in lower taxed jurisdictions.
As of September 30, 2016, the Company has a liability for gross unrecognized tax benefits of $805 recorded. This amount includes $590 of unrecognized tax benefits which, if ultimately recognized, will reduce the Company’s annual effective income tax rate. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of September 30, 2016, the Company had accrued approximately $109 for the payment of interest and penalties.