Income Taxes

The following table presents the components of income tax expense/ (benefit) for continuing operations, discontinued operations, noncontrolling interests and the Company:



	Nine months ended September 30,
	2012			2011
	(In thousands)
Income/ (loss) from continuing operations:
Income/ (loss) before income taxes	$	50,985		$	32,089
Income tax expense/ (benefit)	14,215			8,559
Net income/ (loss) from continuing operations	$	36,770		$	23,530
Effective tax rate, continuing operations	27.9		%	26.7		%

Income from discontinued operations:
Income before income taxes	$	6,999		$	8,305
Income tax expense	1,183			3,495
Net income from discontinued operations	$	5,816		$	4,810
Effective tax rate, discontinued operations	16.9		%	42.1		%

Income/ (loss) attributable to noncontrolling interests:
Income/ (loss) before income taxes	$	2,407		$	2,265
Income tax expense/ (benefit)	—			—
Net income attributable to noncontrolling interests	$	2,407		$	2,265
Effective tax rate, noncontrolling interests	—		%	—		%

Income/ (loss) attributable to the Company
Income/ (loss) before income taxes	$	55,577		$	38,129
Income tax expense/ (benefit)	15,398			12,054
Net income/ (loss) attributable to the Company	$	40,179		$	26,075
Effective tax rate attributable to the Company	27.7		%	31.6		%

The effective tax rate for continuing operations for the nine months ended September 30, 2012 of 27.9%, with related tax expense of $14.2 million, was calculated based on a projected 2012 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 items were partially offset by state and local income taxes.

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 items were partially offset by state and local income taxes.

The effective tax rate for continuing operations for the nine months ended September 30, 2012 is greater than the effective tax rate for the same period in 2011 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, due primarily to the higher level of income before taxes in 2012 as compared to 2011.

Due to the sale of DTC in the second quarter of 2012, the results of operations related to DTC are included in “discontinued operations” in the table above. Contingent consideration related to the 2009 divestiture of certain affiliates, primarily related to the revenue sharing agreement with Westfield Capital Management Company, LLC, is also 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.