Income Taxes

We calculate our interim period provision for income taxes based on our projected annual effective tax rate as adjusted for certain discrete items.

The table below shows our effective tax rates attributable to continuing operations:



	Three Months Ended June 30				Six Months Ended June 30
	2014		2013		2014		2013
Effective tax rate	50.3	%	45.8	%	37.8	%	37.4	%

Our effective tax rate normally differs from the federal statutory tax rate of 35% due to additional provision for multistate income tax obligations. Other significant items that had an impact on our effective tax rates are noted below.

Our effective tax rate for the three months ended June 30, 2014, was higher than the federal statutory rate of 35%. In the second quarter of 2014, IES recorded a $6.7 million goodwill impairment loss. This amount is not deductible for income tax purposes.

Our effective tax rate for the three months ended June 30, 2013, was higher than the federal statutory rate of 35%. Various favorable tax adjustments were recorded in the second quarter of 2013, which when combined with a net loss for the quarter, caused the effective tax rate to increase.

During the three and six months ended June 30, 2014, there was not a significant change in our liability for unrecognized tax benefits.