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INCOME TAXES
 9 Months Ended
Sep. 30, 2017
Income Tax Disclosure [Abstract]  
INCOME TAXES
INCOME TAXES

The following table reconciles the statutory federal tax rate and the Company's effective tax rate for the periods indicated:

 
 
Three months ended September 30,
 
Nine months ended September 30,
 
 
2017
 
2016
 
2017
 
2016
Statutory federal income tax rate
 
35.0
 %
 
35.0
 %
 
35.0
 %
 
35.0
 %
Domestic production activities deductions
 
(2.6
)%
 
(15.7
)%
 
(2.7
)%
 
(5.2
)%
Federal and state tax credits
 
(3.8
)%
 
(4.2
)%
 
(2.1
)%
 
(2.2
)%
Excess tax deductions
 
(0.1
)%
 
—
 %
 
(0.8
)%
 
—
 %
State income taxes
 
1.6
 %
 
1.9
 %
 
1.7
 %
 
2.0
 %
Uncertain tax positions
 
(0.2
)%
 
4.3
 %
 
1.4
 %
 
2.2
 %
Nondeductible and other expenses
 
0.3
 %
 
(0.9
)%
 
0.6
 %
 
(0.9
)%
Effective federal and state income tax rate
 
30.2
 %
 
20.4
 %
 
33.1
 %
 
30.9
 %


The Company's effective tax rate was approximately 30% and 33% for the three- and nine- months ended September 30, 2017, respectively. The Company's effective tax rate for the three-month period ended September 30, 2017 reflects an increase in the previously estimated research and development tax credit for the 2016 and 2017 tax years upon the filing of the Company's 2016 federal tax return during the current quarter and released reserves to the Company's liability for unrecognized income tax benefits due to the expiration of the statute of limitations for certain tax years. For the nine-months ended September 30, 2017, the Company's effective tax rate was also favorably impacted by benefits related to excess tax deductions for the vesting of restricted stock awards, which the Company began recognizing in the provision for income taxes in the first quarter of 2017 upon the adoption of ASU 2016-09 (See Note 1).

The Company's effective tax rate was approximately 20% and 31% for the three- and nine- months ended September 30, 2016, respectively. The Company's lower effective tax rate in 2016 was mainly due to favorable benefits related to the domestic production activities deduction, the federal research and development tax credit, and an adjustment to certain deferred tax liabilities related to a previous acquisition of a business. During the third quarter of 2016, the Company completed its study of qualifying activities for the domestic production activities deduction and began recognizing tax benefits for the deduction upon the filing of its fiscal 2015 federal income tax return. The Company recognized tax benefits, included in its income tax provision for 2016, of approximately $1.4 million for the 2015 tax year and approximately $1.0 million for the first nine months of the 2016 tax year, related to the domestic production activities deduction.

The Company’s liability for unrecognized income tax benefits included in other long-term liabilities in the unaudited consolidated balance sheet at September 30, 2017 and the consolidated balance sheet at December 31, 2016 was approximately $7.5 million and $6.6 million, respectively. The increase in the amount of the liability for unrecognized income tax benefits in 2017 was mainly due to the domestic production activities deduction recognized during the nine-month period ended September 30, 2017.