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Income Taxes
6 Months Ended
Jun. 30, 2015
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
Our effective income tax rate was 29.0% and 33.9% in the second quarter of 2015 and 2014, respectively. Our effective income tax rate was 30.3% and 31.1% for the six months ended June 30, 2015 and 2014, respectively. In the second quarter of 2015, our income tax rate was unfavorably impacted by a discrete tax expense of approximately $0.4 million due to the redemption of corporate owned life insurance policies, and was favorably impacted by a discrete tax benefit of approximately $1.6 million due to a change in our state tax rate as a result of a legal reorganization undertaken during the quarter. In both the second quarter of 2015, as well as the second quarter of 2014, our income tax rate benefited from favorable tax rates on certain foreign business activity as compared to our statutory tax rate of 35%.
We are subject to income taxes in the United States and in numerous foreign jurisdictions.  No provision is made for U.S. income taxes on the undistributed earnings of substantially all of our wholly-owned foreign subsidiaries because such earnings are indefinitely reinvested in those companies. If circumstances change and it becomes apparent that some or all of the undistributed earnings of our wholly-owned foreign subsidiaries will not be indefinitely reinvested, a provision for the tax consequences, if any, will be recorded in the period in which the circumstances change.
Our accounting policy is to account for interest expense and penalties related to uncertain tax positions as income tax expense.  As of June 30, 2015, we have approximately $1.2 million of accrued interest related to uncertain tax positions included in the $12.4 million of unrecognized tax benefits, $12.3 million of which, if recognized, would impact the effective tax rate.
We are subject to taxation in the U.S. and various state and foreign jurisdictions. Our tax years from 2011 through 2014 are subject to examination by these various tax authorities. With few exceptions, we are no longer subject to U.S. federal, state, local and foreign examinations by tax authorities for years before 2011.