10.	INCOME TAXES

The provision for income taxes is based on a current estimate of the annual effective tax rate adjusted to reflect the impact of discrete items. The Company’s effective tax rate may fluctuate from quarter to quarter as a result of a variety of factors, including changes in the Company’s assessment of certain tax contingencies, changes in tax law, outcomes of administrative audits, the impact of discrete items, and the mix of earnings.

For the three months ended September 30, 2017 and 2016, the Company utilized an effective tax rate of 42.1% and 37.9%, respectively, to calculate its provision for income taxes. These rates differ from the federal statutory rate primarily due to the timing of certain discrete items.

For the six months ended September 30, 2017 and 2016, the Company utilized an effective tax rate of 38.7% and 39.8%, respectively, to calculate its provision for income taxes. The effective tax rate for the six months ended September 30, 2017 reflects a favorable impact of a $1.0 million discrete income tax benefit related to the release of tax reserves recorded during the three months ended June 30, 2017.