Income Taxes

The following table sets forth information about the Company’s income tax provision for the periods indicated (dollar amounts in thousands):



	Three Months Ended March 31,
	2017			2016
Income before income taxes	$	65,326		$	66,572
Income tax provision	24,299			24,686
Net income	$	41,027		$	41,886

Income tax provision as a percentage of income before income taxes	37.2		%	37.1		%

During the three month periods ended March 31, 2017 and 2016, the Company recorded an income tax provision of $24.3 million and $24.7 million, or 37.2% and 37.1% of income before income taxes, respectively. The Company anticipates that its effective tax rate will for the year 2017 will be approximately 37.5%. The income tax provision rate in the current year was increased in comparison to the prior year due to losses at the Company’s Indian and Swiss subsidiaries.

As of March 31, 2017, the Company could not conclude that it was more likely than not that tax benefits from certain of these net operating losses would be realized. Accordingly, as of March 31, 2017, the Company increased its valuation allowance to $11.2 million for certain of the losses at its Indian subsidiary and the entire amount of the loss at its Swiss subsidiary, compared to a valuation allowance of $9.9 million as of December 31, 2016.

In accordance with ASC 740-10-25, Income Taxes - Recognition, the Company reviews its tax positions to determine whether it is “more likely than not” that its tax positions will be sustained upon examination, and if any tax positions are deemed to fall short of that standard, the Company establishes reserves based on the financial exposure and the likelihood that its tax positions would not be sustained. Based on its evaluations, the Company determined that it would not recognize tax benefits on $1.4 million and $1.3 million related to uncertain tax positions as of March 31, 2017 and December 31, 2016, respectively. If recognized, of the $1.4 million of uncertain tax positions as of March 31, 2017, $1.2 million of these tax positions will impact the Company’s effective rate with the remaining $0.2 million affecting goodwill.