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Income Taxes
6 Months Ended
Jun. 30, 2015
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The effective income tax rate for income taxes as a percentage of income from continuing operations before equity in earnings of affiliates and income taxes was 33.1% and 27.2% for the three months ended June 30, 2015 and 2014, respectively, and 32.0% and 33.0% for the six months ended June 30, 2015 and 2014, respectively. For both the three and six months ended June 30, 2015, we released a foreign valuation allowance of approximately $2.8 million due to the emergence from cumulative losses in recent years and a return to sustainable operating profits, as well as projections of future taxable income.

For the three months ended June 30, 2015 when compared to 2014, the increase in the effective income tax rate was primarily attributable to foreign rate differentials in jurisdictions with tax rates lower than the U.S. and non-recurring discrete items associated with the disposition of collateral solutions and field services businesses in 2014, partially offset by the favorable release of certain foreign valuation allowances. For the six months ended June 30, 2015, when compared to 2014, the decrease in the effective income tax rate was primarily attributable to the release of certain foreign valuation allowances, foreign rate differentials in jurisdictions with tax rates lower than the U.S. and favorable discrete adjustments in our uncertain tax benefits, partially offset by non-recurring discrete items associated with the disposition of collateral solutions and field services businesses in 2014.

Income taxes included in equity in earnings of affiliates were $3.1 million and $2.4 million for the three months ended June 30, 2015 and 2014, respectively, and $5.5 million and $3.9 million for the six months ended June 30, 2015 and 2014, respectively. For the purpose of segment reporting, these amounts are not reflected at the segment level.

We are currently under examination for the years 2005 to 2011 by the U.S. federal and various state taxing authorities. It is reasonably possible the amount of unrecognized tax benefit with respect to certain unrecognized tax positions could significantly increase or decrease within the next twelve months. We estimate the unrecognized tax benefit could decrease by up to $21.6 million within the next twelve months. The estimated change is primarily related to IRS audits, subject to the FAFC indemnification, and will have no impact to net income. See Note 11 - Litigation and Regulatory Contingencies for further discussion on FAFC.