INCOME TAXES

The Company recognized income tax expense of $22.9 million in the first six months of 2015 compared to $17.3 million for the same period in the prior year. The effective tax rate for the first six months of 2015 was 36.9%, which differs from the U.S. Federal statutory rate of 35% primarily due to the impact of state and local taxes and the benefit of the U.S. Internal Revenue Code domestic manufacturing deduction. The effective tax rate for the first six months of 2014 was 42.4%, which differs from the U.S. Federal statutory rate of 35% primarily due to the impact of state and local taxes and the revaluation of the Company’s net deferred tax assets due to a reduction in its state and local statutory income tax rates.