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Income Taxes
6 Months Ended
Jun. 30, 2016
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 33.5% and 33.1% for the three months ended June 30, 2016 and 2015, respectively, and 34.7% and 32.0% for the six months ended June 30, 2016 and 2015, respectively.

For the three and six months ended June 30, 2016 when compared to 2015, the increase in the effective tax rate was due to non-recurring favorable discrete items occurring in 2015, partially offset by current year favorable rate reductions related to federal research credits being permanently enacted, the release of a capital loss valuation allowance related to a capital gain, a current year favorable discrete item related to prior year uncertain foreign tax benefits and a current year unfavorable discrete item from acquisition-related costs.

Income taxes included in equity in earnings of affiliates were $0.3 million and $3.1 million for the three months ended June 30, 2016 and 2015, respectively, and $0.4 million and $5.5 million for the six months ended June 30, 2016 and 2015, respectively. For the purpose of segment reporting, these amounts are included in corporate and therefore not reflected in our reportable segments.

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 $21.5 million within the next twelve months. The estimated change is primarily related to IRS audits, subject to the FAFC indemnification, and may have minimal impact to net income. See Note 11 - Litigation and Regulatory Contingencies for further discussion on FAFC.