INCOME TAXES

Income tax expense and effective tax rates were as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
	(in thousands, except effective tax rate)
Income before income taxes	$	2,584		$	157		$	48,118		$	31,854
Income tax expense	955			1,690			13,519			7,704
Effective tax rate	37.0		%	1,076.4		%	28.1		%	24.2		%

The decrease in the effective tax rate for the three months ended September 30, 2017, compared to the same period in 2016, is primarily due to the atypical rate in 2016 caused by the amount of income tax expense compared to the low income before income taxes for the period. Additionally, there is an impact due to operating losses in certain jurisdictions where the Company has determined that it is not more likely than not to realize the associated tax benefits, partially offset by tax expense recorded in profitable jurisdictions. The increase in effective tax rate for the nine months ended September 30, 2017, compared to the same period in 2016, was driven primarily by tax expense recorded in profitable jurisdictions, partially offset by operating losses in certain jurisdictions where the Company has determined that it is not more likely than not to realize the associated tax benefits. The Company’s effective income tax rate, for each period presented, also differs from the federal U.S. statutory rate primarily due to differences in income tax rates between U.S. and foreign jurisdictions as well as book losses in certain jurisdictions for which tax benefits cannot be recognized. There were no significant or unusual discrete tax items during the three and nine months ended September 30, 2017. The Company had unrecognized tax benefits of $5.1 million and $4.8 million at September 30, 2017 and December 31, 2016, respectively, and the Company does not expect any significant changes in tax benefits in the next twelve months.