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Income Taxes
9 Months Ended
Sep. 30, 2015
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The Company calculates an effective income tax rate each quarter using the estimated annual effective rate method based upon forecasted annual income by jurisdiction, statutory tax rates and other tax-related items. The impact of discrete items is recognized in the interim period in which they occur. Discrete items and the mix of domestic and foreign pre-tax income and losses with no tax benefit may significantly impact the interim period income tax provision and increase the volatility of the interim period effective tax rate at low levels of pre-tax results.
The effective tax rates for the three months ended September 30, 2015 and 2014 were 5.8% and 34.8%, respectively. The effective tax rates for the nine months ended September 30, 2015 and 2014 were (4.1)% and 40.2%, respectively. During the three months ended September 30, 2015, the Company recorded a $3.2 million benefit related to the impairment of goodwill and a $2.7 million charge for the increase in valuation allowance related to certain deferred tax assets. In addition, during the nine months ended September 30, 2014, the Company recorded a $0.5 million charge for the write-off of deferred tax assets related to the forfeiture of the outstanding equity awards due to the separation of the Company's former CEO.

Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets, including net operating loss carryforwards. Management’s assessment is made for each taxpayer on a jurisdiction by jurisdiction basis. On the basis of this evaluation, as of September 30, 2015, a full valuation allowance has been recorded against the deferred tax asset related to part of the group’s US state taxes as these are more likely than not to be realized. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are increased or decreased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as our projections for growth.