Income Taxes |
6 Months Ended |
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Jun. 30, 2016 | |
| Income Taxes | |
| Income Taxes |
9. INCOME TAXES
Our effective tax rates were 38.7 percent and 38.8 percent for the three and six months ended June 30, 2016, respectively. The effective tax rates for the three and six months ended June 30, 2015, were 20.4 percent and 29.8 percent, respectively. The lower rate in 2015 was primarily due to decreases in our valuation allowance resulting from a partial use of our Federal net operating loss carryforward by Masco.
For 2015 activity through the Separation, we filed our tax returns as a member of the Masco consolidated group for U.S. Federal and certain State jurisdictions. As a result, certain tax attributes, primarily the Federal and State net operating loss carryforwards, were treated as assets of the Masco consolidated group, which they were able to utilize through December 31, 2015. Masco fully utilized the Federal net operating loss and certain State net operating losses by the end of 2015.
In the fourth quarter of 2015, we released all but $0.8 million of our valuation allowance against U.S. Federal and certain state deferred tax assets, due primarily to a return to sustainable operating profitability.
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