5.	Income Taxes

For the three and nine months ended September 30, 2017, we had an effective income tax rate from continuing operations of 34.3% and 35.8%, respectively, each of which was favorably impacted by the tax benefits of share-based awards following the adoption of ASU 2016-09 on January 1, 2017.

For the three months ended September 30, 2016, we had income tax expense from continuing operations of $13.1 million related to pre-tax income of $17.9 million, or an effective income tax rate of 73.2%. This was comprised of income tax expense for the third quarter of 2016 as well as $15.6 million of incremental tax expense related to the first half of 2016, a period in which no income tax provision was recorded due to tax benefits on losses generated by discontinued operations, as further explained below. These amounts of income tax expense were partially offset by an income tax benefit of $9.6 million related to a reversal of a domestic deferred tax asset valuation allowance initially recorded in the fourth quarter of 2015. We believe that projected core earnings of the remaining Network Solutions business will be sufficient to utilize the net operating losses within the expiration period.

We did not record income tax expense during the first half of 2016 because we followed the intra-period tax allocation guidance in ASC 740-20 and the example in ASC 740-20-55-14, which requires that the amount of tax attributable to the current year income from continuing operations be determined by a computation that does not consider the tax effects of items that are excluded from income from continuing operations (e.g. discontinued operations). We had net operating loss carryforwards from 2015 subject to a valuation allowance at December 31, 2015, which, upon reversal of the valuation allowance in the first six months of 2016, we utilized to offset income from continuing operations for the three and six months ended June 30, 2016.

For the nine months ended September 30, 2016, we had an effective tax income tax rate from continuing operations of 23.0%, primarily due to the inclusion of an income tax benefit of $9.6 million related to a reversal of a domestic deferred tax asset valuation allowance, as discussed above.

At September 30, 2017, we had approximately $97.2 million of federal loss carryforwards, approximately $146.8 million of state loss carryforwards, and approximately $9.7 million of foreign tax credits.

We file income tax returns in the U.S. Federal jurisdiction and in various state and foreign jurisdictions. Our 2014 Federal income tax return is currently under IRS examination. Tax years remaining subject to examination in the U.S. Federal jurisdiction include 2014 to present.