8. Income Taxes

Income taxes were $28.4 million for the three months ended March 31, 2017, as compared to $47.6 million for the same period in 2016. The effective income tax rate was 25.0% for the three months ended March 31, 2017, as compared to 33.2% for the same period in 2016. The decrease in the effective tax rate for the three months ended March 31, 2017, as compared to the same period in 2016, was primarily due to the increase in net benefits from discrete events in addition to the impact of changes in the geographic mix of the Company’s income. Included in the discrete events for the three months ended March 31, 2017 was the impact of $4.3 million of excess tax benefits generated during the quarter relating to the Company’s application of ASU 2016-09 that was adopted on January 1, 2017.

As of March 31, 2017, the total amount of unrecognized tax benefits, including related interest and penalties was $67.5 million. If the total amount of unrecognized tax benefits was recognized, $48.9 million of unrecognized tax benefits, $10.3 million of interest and $2.2 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 $11.5 million within the next twelve months. Of this possible decrease, $4.7 million would be due to the settlement of audits or resolution of administrative or judicial proceedings. The remaining possible decrease of $6.8 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.