INCOME TAXES (Note)

6 Months Ended

Jun. 30, 2016

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

	Three Months Ended   June 30,						Six Months Ended   June 30,
	2016			2015			2016			2015
	(in thousands, except percentages)
Income tax expense	$	(3,572	)	$	(272	)	$	(8,370	)	$	(579	)
Effective tax rate	28.4		%	4.1		%	34.5		%	4.7		%

For the three and six months ended June 30, 2016, the effective tax rate varied from the federal statutory rate of 35% primarily due to the benefit derived from the federal research tax credit, partially offset by state taxes. The federal research tax credit benefit is the result of a study completed during the quarter for the open tax years of 2011 through 2015, plus an estimate of the benefit from current research activities.

For the three and six months ended June 30, 2015, the effective tax rate varied from the federal statutory rate of 35% primarily due to the existence of a valuation allowance that was previously provided to offset the Company's net deferred tax asset and state taxes. During the fourth quarter of 2015, the Company released the majority of the valuation allowance.