Taxes on Income (Loss)

6 Months Ended

Jun. 30, 2015

Income Tax Disclosure [Abstract]

Taxes on Income (Loss)

Taxes on Income (Loss)

The effective tax rate for the three months ended June 30, 2015 and 2014 was 54% and 41%, respectively. The effective tax rate for the six months ended June 30, 2015 and 2014 was (31)% and 91%, respectively. The effective tax rate for the full fiscal year 2015 is expected to be approximately 37%.

The Company recorded a tax provision of $27 million for the three months ended June 30, 2015 compared to $50 million for the three months ended June 30, 2014. The change was the result of lower pre-tax income, offset by discrete items in the quarter, composition of earnings by jurisdiction and a comparatively larger effect of the suspension of the favorable Subpart F provision of the U.S. Federal Tax Law in the first quarter 2014.

The Company recorded a tax provision of $11 million for the six months ended June 30, 2015 compared to $58 million for the six months ended June 30, 2014. The provision for taxes on income decreased primarily due to the pre-tax loss in 2015, composition of earnings by jurisdiction and a comparatively larger effect of the suspension of the favorable Subpart F provision of the U.S. Federal Tax Law in the first quarter 2014.