NOTE 11. Income Taxes

The following table provides details of income taxes:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Income before income taxes	$	25,663		$	12,970		$	48,022		$	43,124
Provision for income taxes	$	8,294		$	3,684		$	14,309		$	12,298
Effective tax rate		32.3	%		28.4	%		29.8	%		28.5	%

The income tax provision for the three and nine months ended September 30, 2017 was computed based on the Company’s annual forecast of profit by jurisdiction and forecasted effective tax rate for the year. The changes in the Company’s effective tax rate for the three and nine months ended September 30, 2017 compared to the same period for the prior year are primarily due to changes in the mix of forecasted earnings by jurisdictions.

The Company currently has a partial valuation allowance recorded against certain foreign and state net operating loss and credit carryforwards where the realizability of such deferred tax assets is substantially in doubt. Each quarter, the Company assesses the likelihood that it will be able to recover its deferred tax assets. The Company considers available evidence, both positive and negative, including forecasted earnings in assessing the need for a valuation allowance. As a result of the Company’s analysis, it concluded that it is more likely than not that a portion of its deferred tax assets will not be realized. Therefore, the Company continues to provide a valuation allowance against certain deferred tax assets. The Company continues to monitor available evidence and may reverse some or all of the remaining valuation allowance in future periods, if appropriate. The Company has a recorded valuation allowance against certain of its deferred tax assets of $1,924 as of September 30, 2017 and December 31, 2016.