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Income Taxes
9 Months Ended
Sep. 30, 2014
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The effective income tax rate for continuing operations was 39.2% and 32.4% for the three months ended September 30, 2014 and September 30, 2013, respectively. The increase in the effective income tax rate was primarily due to the assumed tax treatment of charges for regulatory matters (see Note 11 Commitments and Contingencies) and a tax benefit on the sale of Aviation Week in the third quarter of 2013.

The effective income tax rate for continuing operations was 35.1% and 33.6% for the nine months ended September 30, 2014 and September 30, 2013, respectively. The increase in effective income tax rate was primarily due to the assumed tax treatment of charges for regulatory matters.

At the end of each interim period, we estimate the annual effective tax rate and apply that rate to our ordinary quarterly earnings. The tax expense or benefit related to significant, unusual or extraordinary items that will be separately reported or reported net of their related tax effect, and are individually computed, are recognized in the interim period in which those items occur. In addition, the effect of changes in enacted tax laws or rates or tax status is recognized in the interim period in which the change occurs.

As of September 30, 2014 and December 31, 2013, the total amount of federal, state and local, and foreign unrecognized tax benefits was $93 million and $82 million, respectively, exclusive of interest and penalties. We recognize accrued interest and penalties related to unrecognized tax benefits in interest expense and operating-related expense, respectively. In addition to the unrecognized tax benefits, as of September 30, 2014 and December 31, 2013, we had $16 million and $19 million respectively of accrued interest and penalties associated with uncertain tax positions.

Based on the current status of income tax audits, we believe that it is reasonably possible that the total amount of unrecognized tax benefits will significantly decrease in the next twelve months. Although the ultimate resolution of our tax audits is unpredictable, the resulting change in our unrecognized tax benefits could have a material impact on our results of operations and/or cash flows.