INCOME TAXES	9 Months Ended
Sep. 30, 2015
INCOME TAXES
INCOME TAXES	NOTE 6—INCOME TAXES The Company’s effective tax rate for the three and nine months ended September 30, 2015 was 35.3% and 40.2% based on pretax income of $2.8 million and $6.2 million, respectively. Our effective tax rate for the quarter is higher than the statutory rate primarily due to state taxes, non-deductible expenses and net increase of valuation allowances against deferred tax assets. This compared to 25.3% and 29.0% for the three and nine months ended September 30, 2014, respectively. The difference for the three and nine months ended September 30, 2015 compared to the three and nine months ended September 30, 2014 is primarily due to changes in pre-tax income by jurisdiction, the impact of permanent items and state taxes on lower projections of pre-tax book income and certain discrete tax benefits in 2014 related to tax liabilities on unremitted foreign earnings and reversal of reserves for previously unrecognized tax positions. As of September 30, 2015, the Company had total unrecognized tax benefits of approximately $2.4 million all of which would impact the Company’s effective tax rate if recognized. The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax provision in its condensed consolidated statement of operations. As of September 30, 2015, the Company’s accrual of interest and penalties amounted to $0.6 million.

INCOME TAXES

9 Months Ended

Sep. 30, 2015

NOTE 6—INCOME TAXES

The Company’s effective tax rate for the three and nine months ended September 30, 2015 was 35.3% and 40.2% based on pretax income of $2.8 million and $6.2 million, respectively. Our effective tax rate for the quarter is higher than the statutory rate primarily due to state taxes, non-deductible expenses and net increase of valuation allowances against deferred tax assets. This compared to 25.3% and 29.0% for the three and nine months ended September 30, 2014, respectively. The difference for the three and nine months ended September 30, 2015 compared to the three and nine months ended September 30, 2014 is primarily due to changes in pre-tax income by jurisdiction, the impact of permanent items and state taxes on lower projections of pre-tax book income and certain discrete tax benefits in 2014 related to tax liabilities on unremitted foreign earnings and reversal of reserves for previously unrecognized tax positions.

As of September 30, 2015, the Company had total unrecognized tax benefits of approximately $2.4 million all of which would impact the Company’s effective tax rate if recognized. The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax provision in its condensed consolidated statement of operations. As of September 30, 2015, the Company’s accrual of interest and penalties amounted to $0.6 million.