Income Taxes

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



	Nine months ended September 30,
	2011			2010
	(In thousands)
Income/ (loss) from continuing operations:
Income/ (loss) before income taxes	$	32,256		$	(12,173	)
Income tax expense/ (benefit)	8,620			(11,278		)
Net income/ (loss) from continuing operations	$	23,636		$	(895	)
Effective tax rate, continuing operations	26.7		%	92.6		%

Income/ (loss) from discontinued operations:
Income/ (loss) before income taxes	$	8,186		$	4,214
Income tax expense/ (benefit)	3,434			2,402
Net income/ (loss) from discontinued operations	$	4,752		$	1,812
Effective tax rate, discontinued operations	41.9		%	57.0		%

Income/ (loss) attributable to noncontrolling interests:
Income/ (loss) before income taxes	$	2,313		$	1,929
Income tax expense/ (benefit)	—			—
Net income attributable to noncontrolling interests	$	2,313		$	1,929
Effective tax rate, noncontrolling interests	—		%	—		%

Income/ (loss) attributable to the Company
Income/ (loss) before income taxes	$	38,129		$	(9,888	)
Income tax expense/ (benefit)	12,054			(8,876		)
Net income/ (loss) attributable to the Company	$	26,075		$	(1,012	)
Effective tax rate attributable to the Company	31.6		%	89.8		%

The effective tax rate for continuing operations for the nine months ended September 30, 2011 of 26.7%, with related tax expense of $8.6 million, was calculated based on a projected 2011 annual effective tax rate. 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 nine months ended September 30, 2010 of 92.6%, with related tax benefit of $11.3 million, was calculated based on year-to-date income/ (loss) before taxes. Pursuant to ASC 740, Income Taxes, paragraphs 740-270-30-30 through 30-34, the tax benefit recognized for the year-to-date loss was limited to the amount that would be recognized if the year-to-date ordinary loss was the anticipated loss for the fiscal year. The effective tax rate was greater than the statutory rate of 35% due primarily to earnings from tax-exempt investments, income tax credits, state and local income tax benefits and income attributable to noncontrolling interests. These items were partially offset by executive compensation expenses, which cannot 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 nine months ended September 30, 2011 is less than the effective tax rate for the same period in 2010 due primarily to earnings from tax-exempt investments, income tax credits, state and local income taxes and income attributable to noncontrolling interests having a smaller impact on the effective tax rate, due primarily to the higher level of income before taxes in 2011 as compared to the loss before taxes in 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.