NOTE 11.Income Taxes

 

For interim income tax reporting the Company estimates its annual effective tax rate and applies this effective tax rate to its year to date pre-tax (loss) income.  The Company’s effective income tax rate was 46.2% and 90.5% for the three months ended March 31, 2015 and 2014, respectively. The 2015 effective tax rate differed from the statutory federal rate of 35.0% primarily as a result of the impact of certain discrete period items. The 2014 effective tax rate was higher than the statutory rate primarily due to the amount of forecasted non-deductible expenses relative to the forecasted full year pre-tax profit.