Income Taxes

6 Months Ended

Jun. 30, 2019

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,
	2019			2018
	(In thousands)
Income from continuing operations:
Income before income taxes	$	49,277		$	52,867
Income tax expense	10,286			23,425
Net income from continuing operations	$	38,991		$	29,442
Effective tax rate, continuing operations	20.9		%	44.3		%

Income from discontinued operations:
Income before income taxes	$	—		$	2,388
Income tax expense				692
Net income from discontinued operations	$	—		$	1,696
Effective tax rate, discontinued operations	—		%	29.0		%

Less: Income attributable to noncontrolling interests:
Income before income taxes	$	169		$	2,018
Income tax expense	—			—
Net income attributable to noncontrolling interests	$	169		$	2,018
Effective tax rate, noncontrolling interests	—		%	—		%

Income attributable to the Company
Income before income taxes	$	49,108		$	53,237
Income tax expense	10,286			24,117
Net income attributable to the Company	$	38,822		$	29,120
Effective tax rate attributable to the Company	20.9		%	45.3		%

The effective tax rate for continuing operations for the six months ended June 30, 2019 of 20.9%, with related tax expense of $10.3 million, was calculated based on a projected 2019 annual effective tax rate. The effective tax rate was less than the statutory rate of 21% due primarily to earnings from tax-exempt investments and income tax credits. These savings were partially offset by state and local income taxes and the accounting for investments in affordable housing projects.

The effective tax rate for continuing operations for the six months ended June 30, 2018 of 44.3%, with related tax expense of $23.4 million, was calculated based on a projected 2018 annual effective tax rate. The effective tax rate was more than the statutory rate of 21% due primarily to the sale of Anchor and state and local income taxes. These items were partially offset by earnings from tax-exempt investments and income tax credits. The Company recorded tax expense of $12.7 million on the sale of Anchor in April 2018, which was primarily due to a book-to-tax basis difference associated with nondeductible goodwill.

The effective tax rate for continuing operations for the six months ended June 30, 2019 is less than the effective tax rate for the same period in 2018 primarily as a result of the $12.7 million tax expense that was recorded on the sale of Anchor in April 2018.