(9) Income Taxes:

The following is a reconciliation of the provision for income taxes computed at federal statutory rates to the effective rates:



	For the three months ended				For the nine months ended
	September 30,				September 30,

	2014		2013		2014		2013

Consolidated tax provision at federal statutory rate	35.0	%	35.0	%	35.0	%	35.0	%
State income tax provisions, net of federal income
tax benefit	1.1		(1.5)		1.1		(4.1)
Tax reserve adjustment	5.5		(1.3)		0.6		(6.6)
Domestic production activities deduction	(16.9)		-		(5.3)		-
Changes in certain deferred tax balances	-		(11.5)		(1.7)		1.5
IRS audit adjustments	-		-		-		7.3
Federal research and development credit	(7.8)		-		(2.4)		-
All other, net	2.0		(1.4)		0.6		(0.6)
Effective tax rate	18.9	%	19.3	%	27.9	%	32.5	%

Income taxes for the nine months ended September 30, 2014 include the impact of a $4.0 million benefit from federal research and development credits, an $8.8 million benefit from the domestic production activities deduction and a $2.9 million benefit arising from state tax law changes, partially offset by a net increase in reserves for uncertain tax positions of $0.9 million.

Income taxes for the nine months ended September 30, 2013 include the impact of a charge of $5.2 million resulting from the settlement of the 2010 IRS audit and a $6.0 million charge resulting from the adjustment of deferred tax balances, partially offset by a $5.0 million benefit from the net reversal of reserves for uncertain tax positions and a $5.0 million benefit arising from state law changes that was recognized in the third quarter of 2013.

As of September 30, 2014, there were no uncertain tax positions for which the statutes of limitations are expected to expire during the next twelve months and which would affect our effective tax rate.