Income Taxes	9 Months Ended
Sep. 30, 2016
Income Taxes
Income Taxes	6. Income Taxes Income tax expense for the three and nine months ended September 30, 2016 was $2.5 million and $8.0 million, respectively. Income tax expense for the three and nine months ended September 30, 2015 was $2.1 million and $2.6 million respectively. The effective tax rates for the three month and nine months ended September 30, 2016 were 38.7% and 41.3%, respectively. The effective tax rate for the three and nine months ended September 30, 2015 was 45.2% and 43.6%, respectively. The decrease in the effective tax rate was primarily due to the impact of the IRS code 162(m) calculation for executive compensation for the three months ended September 30, 2016. 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

9 Months Ended

Sep. 30, 2016

6. Income Taxes

Income tax expense for the three and nine months ended September 30, 2016 was $2.5 million and $8.0 million, respectively. Income tax expense for the three and nine months ended September 30, 2015 was $2.1 million and $2.6 million respectively. The effective tax rates for the three month and nine months ended September 30, 2016 were 38.7% and 41.3%, respectively. The effective tax rate for the three and nine months ended September 30, 2015 was 45.2% and 43.6%, respectively. The decrease in the effective tax rate was primarily due to the impact of the IRS code 162(m) calculation for executive compensation for the three months ended September 30, 2016.

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.