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,
	2015			2014
	(In thousands)
Income from continuing operations:
Income before income taxes	$	26,490		$	23,487
Income tax expense	8,572			7,138
Net income from continuing operations	$	17,918		$	16,349
Effective tax rate, continuing operations	32.4		%	30.4		%

Income from discontinued operations:
Income before income taxes	$	3,663		$	3,452
Income tax expense	1,569			1,524
Net income from discontinued operations	$	2,094		$	1,928
Effective tax rate, discontinued operations	42.8		%	44.1		%

Less: Income attributable to noncontrolling interests:
Income before income taxes	$	1,229		$	1,236
Income tax expense	—			—
Net income attributable to noncontrolling interests	$	1,229		$	1,236
Effective tax rate, noncontrolling interests	—		%	—		%

Income attributable to the Company
Income before income taxes	$	28,924		$	25,703
Income tax expense	10,141			8,662
Net income attributable to the Company	$	18,783		$	17,041
Effective tax rate attributable to the Company	35.1		%	33.7		%

The effective tax rate for continuing operations for the three months ended March 31, 2015 of 32.4%, with related tax expense of $8.6 million, was calculated based on a projected 2015 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 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, 2015 is higher than the effective tax rate for the same period in 2014 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 a 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 reflected the impact of these New York law changes in the quarter ended March 31, 2014, the quarter in which the law was enacted. 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.