Income Taxes	6 Months Ended
Jun. 30, 2014
Income Taxes
Income Taxes	8. Income Taxes Income tax expense (benefit) for the six months ended June 30, 2014 and 2013 was $3.7 million and $(6.8 million), respectively. The effective tax rate for the six months ended June 30, 2014 and 2013 was 36.4% and (150.9%), respectively. The effective rate for the six months ended June 30, 2013 differs from the U.S. federal statutory rate primarily due to an income tax benefit of $8.6 million related to an extraterritorial income (“ETI”) adjustment recorded in the year ago period for certain of our engines. We recognized this income tax benefit in the year ago period resulting from adjustments made to the tax basis of certain of our engines due to a decision in a recent court case on behalf of another company in which our circumstances are similar. The Company records tax expense or benefit for unusual or infrequent items discretely in the period in which they occur. Our tax rate is subject to change based on changes in the mix of assets leased to domestic and foreign lessees, the proportions of revenue generated within and outside of California, the amount of executive compensation exceeding $1.0 million as defined in IRS code 162(m) and numerous other factors, including changes in tax law.

Income Taxes

6 Months Ended

Jun. 30, 2014

8. Income Taxes

Income tax expense (benefit) for the six months ended June 30, 2014 and 2013 was $3.7 million and $(6.8 million), respectively. The effective tax rate for the six months ended June 30, 2014 and 2013 was 36.4% and (150.9%), respectively. The effective rate for the six months ended June 30, 2013 differs from the U.S. federal statutory rate primarily due to an income tax benefit of $8.6 million related to an extraterritorial income (“ETI”) adjustment recorded in the year ago period for certain of our engines. We recognized this income tax benefit in the year ago period resulting from adjustments made to the tax basis of certain of our engines due to a decision in a recent court case on behalf of another company in which our circumstances are similar. The Company records tax expense or benefit for unusual or infrequent items discretely in the period in which they occur. Our tax rate is subject to change based on changes in the mix of assets leased to domestic and foreign lessees, the proportions of revenue generated within and outside of California, the amount of executive compensation exceeding $1.0 million as defined in IRS code 162(m) and numerous other factors, including changes in tax law.