Income Taxes

For the three and nine months ended September 30, 2015 and 2014, the Company's income tax expense and effective tax rates on forecasted pretax losses were:



	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands, except for rate)	2015			2014			2015			2014
Income tax expense	$	44		$	113		$	151		$	155
Effective tax rate	(1		)%	(3		)%	(1		)%	(5		)%

The effective tax rates for the three and nine months ended September 30, 2015 and 2014 were different from the statutory rate primarily due to an increase in the Company's valuation allowances against federal and state net operating losses and federal tax credits, which was partially offset by estimated state tax expense.

The Company projects that its deferred tax assets will exceed its deferred tax liabilities as of December 31, 2015. As a result, the Company determined that it is not more likely than not that it would be able to realize the value of its federal and state net operating loss carryforwards, tax credits and other deferred tax assets and has recorded a full valuation allowance against the excess deferred tax assets. This valuation allowance is expected to increase over time as the Company's deferred tax assets increase.