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Income Taxes
9 Months Ended
Sep. 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 46.4% and 23.7% for the three months ended September 30, 2015 and 2014, respectively, and 37.4% and 26.5% for the nine months ended September 30, 2015 and 2014, respectively.

For the three months ended September 30, 2015 when compared to 2014, the increase in the effective income tax rates were primarily attributable to an increase in unbenefited foreign losses in tax jurisdictions with tax rates lower than the U.S., a decrease in foreign tax credits and prior year non-recurring favorable discrete items associated with the disposition of our collateral solutions and field services businesses.

For the nine months ended September 30, 2015 when compared to the same period in 2014, the increase in the effective income tax rates were attributable to an increase in unbenefited foreign losses in tax jurisdictions with tax rates lower than the U.S., a decrease in foreign tax credits and nonrecurring favorable discrete items associated with research credits and the disposition of our collateral solutions and field service businesses, which were offset by current year nonrecurring favorable discrete items associated with the release of a foreign valuation allowance and reserves related to the acquisition of MSB/DataQuick.

Income taxes included in equity in earnings of affiliates were $2.3 million and $2.5 million for the three months ended September 30, 2015 and 2014, respectively, and $7.8 million and $6.4 million for the nine months ended September 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.