INCOME TAXES

The Company's provision for income taxes in interim periods is based on an estimated annual effective income tax rate derived, in part, from estimated annual pre-tax results from ordinary operations. The annual effective income tax rate is reviewed and, if necessary, adjusted on a quarterly basis.

The Company's income tax expense consisted of the following:



	Three Months Ended
	March 31,
	2016		2015
Income before provision for income taxes	$	35,756	$	34,348
Income tax expense using estimated annual effective income tax rate	14,314		12,965
Impact of discrete items, net	49		(98		)
Income tax expense	$	14,363	$	12,867

The discrete item for the three months ended March 31, 2016 is primarily related to the results of a recent state income tax audit. The discrete item for the three months ended March 31, 2015 is primarily related to the rate differential in other comprehensive income and the results of recent state income tax audit.