The Company’s effective tax rate for the three and nine months ended September 30, 2014 was 41.2% for each period, compared to 43.5% for each of the three and nine months ended September 30, 2013. The Company’s estimated annual effective tax rate after discrete items for 2014 is 40.9%. The Company provides for the effects of income taxes in interim financial statements based on the Company’s estimate of the estimated annual effective tax rate for the full year, which is based on forecasted income by country where the Company operates, adjusted for the tax effects of items that relate discretely to the period, if any. The difference between the statutory tax rate and the Company’s effective tax rate is largely attributable to state income taxes and a full valuation allowance with respect to the deferred tax assets of the Company’s Canadian operations.

The Company completed an analysis related to tax deductibility of IPO transaction costs during the three months ended June 30, 2014, which resulted in a tax benefit of $840,000. This benefit was recognized as an increase to additional paid-in capital and a reduction in current income tax payable and was realized during the three months ended September 30, 2014 as a result of the filing of the 2013 consolidated federal income tax return.

Prior to November 1, 2013, MMREIS was part of a consolidated federal income tax return and various combined and consolidated state tax returns that were filed by MMC. MMREIS and MMC had a tax-sharing agreement whereby MMREIS was charged for income taxes using an effective tax rate of 43.5%. As part of the IPO, the tax-sharing agreement with MMC was terminated effective October 31, 2013. The amount determined under the tax-sharing agreement represented a receivable or obligation of MMREIS from (to) the MMC that MMREIS generally settled on a current basis.