INCOME TAXES	6 Months Ended
Jun. 30, 2017
INCOME TAXES
INCOME TAXES	7. INCOME TAXES For the three and six months ended June 30, 2017, the Company's effective tax rate was 2.6% and 11.8%, respectively. For the three and six months ended June 30, 2016, the Company’s effective tax rate was 9.4% and 9.7%, respectively. The Company’s quarter to date effective tax rate decreased compared to the corresponding period from the prior year primarily due to the recognition of valuation allowances as of December 31, 2016, as discussed below. The Company’s year to date effective tax rate increased compared to the corresponding period from the prior year primarily due to the reversal of accrued uncertain tax position liabilities associated with the processing of outstanding amended returns that were accepted in the first quarter of 2017. The Company assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit the use of the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three year period ended December 31, 2016. Such objective evidence limits the ability to consider other subjective evidence, such as projections for taxable earnings. The income tax benefit for the three and six months ended June 30, 2017 does not include income tax benefits for all of the losses incurred because the Company recorded a full valuation allowance against its federal, state and foreign deferred tax assets with the exception of its trademark intangible and the foreign tax assets associated with net operating losses that can be carried back against prior losses. The Company has recorded a valuation allowance against the associated deferred tax assets for the amounts it deems are not more likely than not realizable. Based on management’s belief that not all the net operating losses are realizable, federal valuation allowances of $5,023,000 and $9,049,000 and additional state valuation allowances of $329,000 and $587,000 were recorded during the three and six months ended June 30, 2017, respectively. In addition, due to the Company’s recent operating losses and valuation allowances, the Company may recognize reduced or no tax benefits on future losses on the condensed consolidated financial statements. The amount of the valuation allowance considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased, or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as projections for future growth.

7. INCOME TAXES

For the three and six months ended June 30, 2017, the Company's effective tax rate was 2.6% and 11.8%, respectively. For the three and six months ended June 30, 2016, the Company’s effective tax rate was 9.4% and 9.7%, respectively. The Company’s quarter to date effective tax rate decreased compared to the corresponding period from the prior year primarily due to the recognition of valuation allowances as of December 31, 2016, as discussed below. The Company’s year to date effective tax rate increased compared to the corresponding period from the prior year primarily due to the reversal of accrued uncertain tax position liabilities associated with the processing of outstanding amended returns that were accepted in the first quarter of 2017.

The Company assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit the use of the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three year period ended December 31, 2016. Such objective evidence limits the ability to consider other subjective evidence, such as projections for taxable earnings.

The income tax benefit for the three and six months ended June 30, 2017 does not include income tax benefits for all of the losses incurred because the Company recorded a full valuation allowance against its federal, state and foreign deferred tax assets with the exception of its trademark intangible and the foreign tax assets associated with net operating losses that can be carried back against prior losses. The Company has recorded a valuation allowance against the associated deferred tax assets for the amounts it deems are not more likely than not realizable. Based on management’s belief that not all the net operating losses are realizable, federal valuation allowances of $5,023,000 and $9,049,000 and additional state valuation allowances of $329,000 and $587,000 were recorded during the three and six months ended June 30, 2017, respectively. In addition, due to the Company’s recent operating losses and valuation allowances, the Company may recognize reduced or no tax benefits on future losses on the condensed consolidated financial statements. The amount of the valuation allowance considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased, or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as projections for future growth.