Income Taxes

The following table compares our income tax benefit and effective tax rates for the three and nine months ended December 31, 2016 and 2015:



	Three months ended						Nine months ended
	December 31,						December 31,
(Dollars in thousands)	2016			2015			2016			2015
Income tax expense (benefit)	$	129		$	(56	)	$	252		$	(100	)
Effective tax rate	(8.0		)%	3.2		%	(4.1		)%	4.3		%

For the three and nine months ended December 31, 2016, the effective tax rate was different than the statutory rate due primarily to the recognition of net operating losses as deferred tax assets, which were offset by increases in the valuation allowance, foreign and state taxes, and other U.S. permanent book to tax differences.

For the three and nine months ended December 31, 2015, the effective tax rate was different than the statutory rate due primarily to the recognition of net operating losses as deferred tax assets, which were offset by increases in the valuation allowance, an adjustment to true-up indefinite-lived intangibles, a refunded settlement of an unrecognized tax benefit, foreign and state taxes, and other U.S. permanent book to tax differences.

We have recorded a valuation allowance offsetting substantially all of our deferred tax assets. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which those temporary differences are deductible. Because of our losses in prior periods, management believes that it is more-likely-than-not that we will not realize the benefits of these deductible differences.