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Income Taxes
6 Months Ended
Jun. 30, 2016
Income Taxes  
Income Taxes

 

(7) Income Taxes

 

A tax benefit from an uncertain tax position may be recognized only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution.

 

The Company had reserves for unrecognized tax benefits of $15.5 million and $15.6 million at June 30, 2016 and December 31, 2015, respectively. The Company had accrued interest expense related to tax reserves of $3.1 million and $2.8 million, net of related tax effects, at June 30, 2016 and December 31, 2015, respectively.

 

Our effective tax rate for the three and six months ended June 30, 2016 was negatively impacted by non-deductible executive compensation expenses that are limited under Section 162(m) of the U.S. Internal Revenue Code.