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7. INCOME TAXES

9 Months Ended

Sep. 30, 2016

7.

INCOME TAXES

We file income tax returns in the U.S. Federal jurisdiction and various state and foreign jurisdictions. We are no longer subject to U.S. Federal tax examinations for years before 2012. In 2014, we were subjected to an IRS examination for our consolidated U.S. Federal return for the year 2011. There were no adjustments to our return as a result of that examination. State jurisdictions that remain subject to examination range from 2011 to 2015. Foreign jurisdiction tax returns that remain subject to examination range from 2010 to 2015 for Canada and from 2010 to 2015 for Puerto Rico. We do not believe we have any uncertain tax positions.

Our policy is to accrue interest and penalties on any uncertain tax position as a component of income tax expense. For the three and nine months ending September 30, 2016 and 2015, no such expenses were recognized.

We provided for income taxes at an estimated effective tax rate of 34.0% and 34.2% for the nine months ended September 30, 2016 and 2015, respectively. In the third quarter of 2016 and 2015, we reduced our estimated tax rate for the expected permanent capital investment in the Dominican Republic, which reduces the amount of dividends that we need to provide for U.S. income taxes.

- Definition

Disclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.

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