Income Taxes

The components of income tax expense/ (benefit) for continuing operations, discontinued operations, noncontrolling interests and the Company are as follows:



	Six months ended June 30,
	2011			2010
	(In thousands)
Income/ (loss) from continuing operations:
Income/ (loss) before income taxes	$	16,812		$	7,113
Income tax expense/ (benefit)	4,051			1,134
Net income/ (loss) from continuing operations	$	12,761		$	5,979
Effective tax rate, continuing operations	24.1		%	15.9		%

Income/ (loss) from discontinued operations:
Income/ (loss) before income taxes	$	5,668		$	2,474
Income tax expense/ (benefit)	2,482			929
Net income/ (loss) from discontinued operations	$	3,186		$	1,545
Effective tax rate, discontinued operations	43.8		%	37.6		%

Income/ (loss) attributable to noncontrolling interests:
Income/ (loss) before income taxes	$	1,551		$	1,301
Income tax expense/ (benefit)	—			—
Net income attributable to noncontrolling interests	$	1,551		$	1,301
Effective tax rate, noncontrolling interests	—		%	—		%

Income/ (loss) attributable to the Company
Income/ (loss) before income taxes	$	20,929		$	8,286
Income tax expense/ (benefit)	6,533			2,063
Net income/ (loss) attributable to the Company	$	14,396		$	6,223
Effective tax rate attributable to the Company	31.2		%	24.9		%

The effective tax rate for continuing operations for the six months ended June 30, 2011 was calculated based on a projected 2011 annual effective tax rate which was 24.1%, with related tax expense of $4.1 million. The effective tax rate was less than the statutory rate of 35% due primarily to earnings from tax-exempt investments, income tax credits, and income attributable to noncontrolling interests. These savings were partially offset by state and local income taxes.

The effective tax rate for continuing operations for the six months ended June 30, 2010 was calculated based on a projected 2010 annual effective tax rate, which was 15.9%, with related tax expense of $1.1 million. The effective tax rate was less than the statutory rate of 35% due primarily to earnings from tax-exempt investments, income tax credits, officers' life insurance and income attributable to noncontrolling interests. These savings were partially offset by state and local income taxes and executive compensation expenses, which could not be deducted for tax purposes due to restrictions under the U.S. Department of the Treasury's Troubled Asset Relief Program's Capital Purchase Program.

The effective tax rate for the six months ended June 30, 2011 is higher than the effective tax rate for the same period in 2010 due primarily to earnings from tax-exempt investments, income tax credits, and income attributable to noncontrolling interests having a smaller impact on the effective tax rate and state and local income taxes having a larger impact on the effective tax rate, both due primarily to the higher level of income before income taxes in 2011 as compared to 2010.

Contingent consideration related to the 2009 divestiture of certain affiliates, primarily related to the revenue sharing agreement with Westfield Capital Management Company, LLC, is reflected under “discontinued operations” in the table above. The profits and losses attributable to owners other than the Company are reflected under “noncontrolling interests” in the table above.