Provision for Income Taxes

3 Months Ended

Mar. 31, 2016

Income Tax Disclosure [Abstract]

Provision for Income Taxes

Note 10. Provision for Income Taxes

For the three months ended March 31, 2016 and 2015, our effective tax rates were 21% and 22%, respectively. The difference between the U.S. federal statutory tax rate of 34% and our effective tax rates was primarily due to non-U.S. based earnings being taxed at lower rates reducing the effective rates for the three months ended March 31, 2016. The difference between the U.S. federal statutory tax rate of 34% and our effective tax rate in the three months ended March 31, 2015 of 22% was due to non-U.S. based earnings being taxed at lower rates reducing the effective rates for the three months ended March 31, 2015 by 10%. As of March 31, 2016, we do not foresee any significant changes to our unrecognized tax benefits within the next twelve months.

In accordance with ASU 2015-17, we have classified all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. In addition, we will no longer allocate valuation allowances between current and noncurrent deferred tax assets because those allowances also will be classified as noncurrent.