Income Taxes

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



	Three months ended March 31,
	2014			2013
	(In thousands)
Income from continuing operations:
Income before income taxes	$	23,487		$	18,451
Income tax expense	7,138			6,040
Net income from continuing operations	$	16,349		$	12,411
Effective tax rate, continuing operations	30.4		%	32.7		%

Income from discontinued operations:
Income before income taxes	$	3,452		$	3,036
Income tax expense	1,524			1,314
Net income from discontinued operations	$	1,928		$	1,722
Effective tax rate, discontinued operations	44.1		%	43.3		%

Less: Income attributable to noncontrolling interests:
Income before income taxes	$	1,236		$	930
Income tax expense	—			—
Net income attributable to noncontrolling interests	$	1,236		$	930
Effective tax rate, noncontrolling interests	—		%	—		%

Income attributable to the Company
Income before income taxes	$	25,703		$	20,557
Income tax expense	8,662			7,354
Net income attributable to the Company	$	17,041		$	13,203
Effective tax rate attributable to the Company	33.7		%	35.8		%

The effective tax rate for continuing operations for the three months ended March 31, 2014 of 30.4%, with related tax expense of $7.1 million, was calculated based on a projected 2014 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 three months ended March 31, 2013 of 32.7%, with related tax expense of $6.0 million, was calculated based on a projected 2013 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 three months ended March 31, 2014 is lower than the effective tax rate for the same period in 2013 due primarily to New York State law changes. On March 31, 2014, New York enacted legislation that requires corporations that are engaged in unitary business operations to file combined returns with their affiliates for tax years beginning on or after January 1, 2015. Starting in 2015, all of the Company's affiliates will be included in the Company's New York tax return instead of just those affiliates with nexus to New York. In addition, the New York tax rate will be reduced from 7.1% to 6.5% for tax years beginning on or after January 1, 2016. The Company incorporated the impact of these New York law changes this quarter due to the law being enacted as of March 31, 2014. The Company adjusted the New York state applicable tax rate and apportionment percentages for purposes of measuring deferred tax assets and liabilities that will reverse after the effective date. The value of the net deferred New York tax asset increased by $0.7 million, which decreased tax expense by $0.5 million, net of federal tax benefit, as of March 31, 2014.

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.