INCOME TAXES

The income tax provision consisted of the following:



	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands, except effective tax rate)	2016			2015			2016			2015
Income (loss) before income tax expense	$	7,742		$	(23,347	)	$	2,352		$	(33,454	)
Income tax expense (benefit)	2,061			(668		)	2,919			450
Effective tax rate	26.6		%	2.9		%	124.1		%	(1.3		)%

The Company records income tax expense each quarter using its best estimate of the full year’s effective tax rate. The Company regularly reviews its deferred tax assets for realizability, taking into consideration all available evidence, both positive and negative, including cumulative losses, projected future pre-tax and taxable income (losses), the expected timing of the reversals of existing temporary differences and the expected impact of tax planning strategies.

As of June 30, 2016, TerraForm Global, Inc. owned 64.8% of Global LLC and consolidates the results of Global LLC through its controlling interest. The Company records SunEdison's 35.2% ownership of Global LLC as a non-controlling interest in the financial statements. Global LLC is treated as a partnership for income tax purposes.

For the six months ended June 30, 2016, the overall effective tax rate was different than the statutory rate of 35.0% primarily due to valuation allowances, tax holiday benefits, projected minimum taxes in foreign jurisdictions, and gross receipt taxes in Brazil. As of June 30, 2016, most jurisdictions were in a net deferred tax asset position. A valuation allowance is recorded against some of the projects with deferred tax assets, primarily because of the historical losses in those jurisdictions.