(10) 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 nine months ended
	September 30,				September 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	4.2		31.4		4.3		7.8
Tax reserve adjustment	6.3		(15.9)		0.7		(3.7)
Domestic production activities deduction	(9.5)		15.8		(2.4)		3.6
Changes in certain deferred tax balances	(0.8)		(9.5)		3.1		6.2
Federal research and development tax credit	1.5		5.4		1.2		1.1
All other, net	-		0.9		0.1		(0.3)
Effective tax rate	36.7	%	63.1	%	42.0	%	49.7	%

Income taxes for the nine months ended September 30, 2016 and 2015 include the impact of $16 million and $11 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 state filing method changes in 2015. Income taxes for the nine months ended September 30, 2016 and 2015 also include the impact of $6 million and $2 million, respectively, in benefits from the adjustment of Federal research and development credits, along with a $12 million reversal of benefits and a $7 million benefit, respectively, related to the domestic production activities deduction.

Amounts pertaining to income tax related accounts of $149 million and $50 million are included in “Income taxes and other current assets” in the consolidated balance sheets as of September 30, 2016 and December 31, 2015, respectively.

In February 2016, we received a Federal income tax refund of $32 million. In October 2016, we received additional Federal income tax refunds of $81 million.