(9) Income Taxes:

The following is a reconciliation of income taxes computed at the federal statutory rate to income taxes computed at the effective rate:



	For the three months ended				For the six months ended
	June 30,				June 30,

	2016		2015		2016		2015

Consolidated tax provision at federal statutory rate	35.0	%	35.0	%	35.0	%	35.0	%
State income tax provisions, net of federal income
tax benefit	6.0		0.4		4.3		1.6
Tax reserve adjustment	(4.9)		(0.1)		(1.2)		(0.5)
Changes in certain deferred tax balances	22.1		23.2		4.4		10.3
Federal research and development tax credit	5.2		-		1.1		-
All other, net	0.9		(0.7)		0.2		(0.1)
Effective tax rate	64.3	%	57.8	%	43.8	%	46.3	%

Income taxes for the three and six months ended June 30, 2016 and 2015 include the impact of $17 million and $15 million, respectively, of benefits resulting from the adjustment of deferred tax balances due to the Verizon Acquisition in 2016, and state tax law changes and a state filing method change in 2015.

Amounts pertaining to income tax related accounts of $20 million and $50 million are included in “Income taxes and other current assets” in the consolidated balance sheets as of June 30, 2016 and December 31, 2015, respectively.