XML 27 R13.htm IDEA: XBRL DOCUMENT v3.4.0.3
Income Taxes
3 Months Ended
Mar. 31, 2016
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
Our effective income tax rates were 30.0% and 31.3% for the three months ended March 31, 2016 and 2015. The effective tax rate for the three months ended March 31, 2016 was lower than the comparable prior year period primarily due to the favorable impact of the permanent reinstatement of the U.S. research and development tax credit (research credit) at the end of 2015. A tax benefit for the research credit was recorded during the three months ended March 31, 2016, and none in the comparable prior year period.
Federal income tax audits have been settled for all years prior to 2011. The years 2011-2012 are currently being examined by the IRS. We are also subject to examination in major state and international jurisdictions for the 2001-2015 tax years. We believe appropriate provisions for all outstanding tax issues have been made for all jurisdictions and all open years.
Audit outcomes and the timing of audit settlements are subject to significant uncertainty. It is reasonably possible that within the next 12 months we will resolve the matters presently under consideration for the 2011-2012 tax years with the IRS. Depending on the timing and outcome of that audit settlement, unrecognized tax benefits could decrease by up to $115 based on current estimates.