8. Income Taxes

Income taxes were $41.7 million and $69.2 million for the three and nine months ended September 30, 2016, respectively, as compared to $43.9 million and $114.8 million for the same periods in 2015. The effective income tax rate was 32.2% and 30.1% for the three and nine months ended September 30, 2016, respectively, as compared to 31.9% and 31.1% for the same periods in 2015. The increase in the effective tax rate for the three months ended September 30, 2016, as compared to the same period in 2015, was primarily due to the impact of changes in the geographic mix of the Company’s income, partially offset by an increase in net benefits from discrete events. The decrease in the effective tax rate for the nine months ended September 30, 2016, as compared to the same period in 2015, was primarily due to an increase in net benefits from discrete events.

As of September 30, 2016, the total amount of unrecognized tax benefits, including related interest and penalties was $63.8 million. If the total amount of unrecognized tax benefits was recognized, $46.8 million of unrecognized tax benefits, $9.0 million of interest and $2.3 million of penalties would impact the effective tax rate.

The Company believes that it is reasonably possible that the amount of unrecognized tax benefits could decrease by up to approximately $10.2 million within the next twelve months. Of this possible decrease, $5.4 million would be due to the settlement of audits or resolution of administrative or judicial proceedings. The remaining possible decrease of $4.8 million would be due to the expiration of statute of limitations in various jurisdictions. For a description on contingency matters relating to income taxes see Note 5, Contingencies.