Income Taxes

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



	Six months ended June 30,
	2017			2016
	(In thousands)
Income from continuing operations:
Income before income taxes	$	55,005		$	48,093
Income tax expense	16,516			15,064
Net income from continuing operations	$	38,489		$	33,029
Effective tax rate, continuing operations	30.0		%	31.3		%

Income from discontinued operations:
Income before income taxes	$	4,606		$	5,658
Income tax expense	1,911			2,348
Net income from discontinued operations	$	2,695		$	3,310
Effective tax rate, discontinued operations	41.5		%	41.5		%

Less: Income attributable to noncontrolling interests:
Income before income taxes	$	2,116		$	1,900
Income tax expense	—			—
Net income attributable to noncontrolling interests	$	2,116		$	1,900
Effective tax rate, noncontrolling interests	—		%	—		%

Income attributable to the Company
Income before income taxes	$	57,495		$	51,851
Income tax expense	18,427			17,412
Net income attributable to the Company	$	39,068		$	34,439
Effective tax rate attributable to the Company	32.0		%	33.6		%

The effective tax rate for continuing operations for the six months ended June 30, 2017 of 30.0%, with related tax expense of $16.5 million, was calculated based on a projected 2017 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 six months ended June 30, 2016 of 31.3%, with related tax expense of $15.1 million, was calculated based on a projected 2016 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 six months ended June 30, 2017 is lower than the effective tax rate for the same period in 2016 due primarily to a projected increase in earnings from tax-exempt investments and loans in 2017 as compared to 2016.

In the first quarter of 2017, the Company adopted ASU 2016-09. The impact of ASU 2016-09 for the six months ended June 30, 2017, was a decrease in income tax expense of $0.1 million due to the fair value at the time of vesting of share-based compensation as compared to the grant date fair value, partially offset by stock options expiring unexercised due to being out of the money. There was no significant change to the Company’s effective tax rate related to the adoption of this ASU.