Note 11. Income Taxes

The following table presents our income tax provision and effective income tax rate:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
Income tax expense	$	12,918		$	711		$	19,800		$	12,780
Effective income tax rate		39.9	%		13.4	%		22.7	%		35.2	%

Our effective income tax rate was 39.9% and 13.4% for the three months ended September 30, 2017 and 2016, respectively. The increase in income tax expense of $12,207 was primarily the result of an increase in pre-tax income for the three months ended September 30, 2017 and the impact of $2,358 related to the nondeductible restricted stock issued in connection with the RowdMap Acquisition, partially offset by a $1,833 tax benefit related to stock option exercises and a $481 net tax benefit primarily related to tax returns filed during the quarter. The impact of this additional tax expense and tax benefits relative to the pre-tax income for the three months ended September 30, 2017 resulted in the increase to the effective tax rate. Additionally, during the three months ended September 30, 2016, we recorded a $1,300 tax benefit primarily related to the settlement of an uncertain tax position recorded in a prior period. The effective tax rate for the three months ended September 30, 2016 was impacted by this tax benefit relative to the pre-tax income for the three months ended September 30, 2016.

Our effective income tax rate was 22.7% and 35.2% for the nine months ended September 30, 2017 and 2016 respectively. The decrease in the effective tax rate is primarily due to a $14,874 tax benefit related to stock option exercises, a tax benefit of $337 related to the settlement of an uncertain tax position due to the closure of our audit with the Internal Revenue Service, a tax benefit of $660 related to the filing of amended state tax returns as a result of certain tax planning and a $481 net tax benefit primarily related to tax returns filed during the quarter. These tax benefits were partially offset by additional tax expense of $2,358 related to the nondeductible restricted stock issued in connection with the RowdMap Acquisition.

We file income taxes with the U.S. federal government and various states and foreign jurisdictions. We operate in a number of state and local jurisdictions and as such are subject to state and local income tax examinations based upon various statutes of limitations in each jurisdiction. We are currently under audit by the State of New York for the tax year ended December 31, 2014 and for iHealth Technologies for the tax years ended December 31, 2012, December 31, 2013, May 13, 2014 and December 31, 2014.