INCOME TAXES (Note)

9 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2017			2016			2017			2016
	(in thousands, except percentages)
Income tax expense	$	(4,292	)	$	(6,729	)	$	(3,109	)	$	(15,099	)
Effective tax rate	29.8		%	48.0		%	10.7		%	39.4		%

For the three and nine months ended September 30, 2017, the effective tax rate varied from the federal statutory rate of 35% primarily due to a tax benefit of $0.8 million and $8.4 million, respectively, recognized for excess tax benefits due to employee exercises of stock options and vesting of restricted stock in accordance with ASU 2016-09. See Note 2 —Significant Accounting Policies —Recent Accounting Pronouncements for additional information.

For the third quarter of 2016, the effective tax rate varied from the federal statutory rate of 35% primarily due to state taxes, including the impact of a reduction in the North Carolina state income tax rates which reduced the value of the Company's deferred tax assets.

For the nine months ended September 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 was the result of a study completed during the second quarter of 2016 for the open tax years 2011 through 2015, plus an estimate of the benefit from 2016 research activities.

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2017			2016			2017			2016
	(in thousands)
Income tax expense - excluding excess tax benefit on stock compensation	$	(5,103	)	$	(6,729	)	$	(11,523	)	$	(15,099	)
Excess tax benefit on stock compensation	811			—			8,414			—
Income tax expense	$	(4,292	)	$	(6,729	)	$	(3,109	)	$	(15,099	)