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Income Taxes
 9 Months Ended
Sep. 30, 2018
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The components of income (loss) before income taxes are as follows: 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
Income (Loss) Before Income Taxes:
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
Ireland
 
$
(18,314
)
 
$
(5,340
)
 
$
(34,203
)
 
$
4,008

United States
 
1,773

 
29,627

 
(1,043
)
 
96,288

France
 
79

 
3,313

 
441

 
(1,950
)
Total income (loss) before income taxes
 
$
(16,462
)
 
$
27,600

 
$
(34,805
)
 
$
98,346

 
The items accounting for the difference between the income tax provision computed at the statutory rate and the Company’s effective tax rate are as follows:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
Income Tax Rate Reconciliation:
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
Statutory tax rate  
 
12.5
 %

12.5
 %
 
12.5
 %
 
12.5
 %
International tax rates differential
 
7.0
 %

24.9
 %
 
6.9
 %
 
20.5
 %
Change in valuation allowance
 
(18.3
)%

(1.6
)%
 
(14.9
)%
 
0.5
 %
Change in fair value of nondeductible contingent consideration
 
8.7
 %

(12.8
)%
 
9.9
 %
 
(10.9
)%
Nondeductible stock-based compensation
 
(3.5
)%

(0.4
)%
 
(2.6
)%
 
(0.3
)%
Unrecognized tax benefits
 
(3.5
)%

0.9
 %
 
(3.1
)%
 
0.8
 %
State and local income taxes, net of federal
 
0.1
 %

—
 %
 
0.2
 %
 
0.1
 %
Change in U.S. tax law
 
—
 %
 
—
 %
 
—
 %
 
—
 %
Other
 
1.2
 %

(2.1
)%
 
0.8
 %
 
(0.9
)%
Effective income tax rate
 
4.2
 %

21.4
 %
 
9.7
 %
 
22.3
 %
 
 
 
 
 
 
 
 
 
Income tax (benefit) provision - at statutory tax rate
 
$
(2,058
)
 
$
3,449

 
$
(4,351
)
 
$
12,294

International tax rates differential
 
(1,153
)
 
6,861

 
(2,394
)
 
20,120

Change in valuation allowance
 
3,007

 
(438
)
 
5,188

 
476

Change in fair value of nondeductible contingent consideration
 
(1,431
)
 
(3,521
)
 
(3,436
)
 
(10,751
)
Nondeductible stock-based compensation
 
578

 
(116
)
 
914

 
(265
)
Unrecognized tax benefits
 
578

 
262

 
1,086

 
771

State and local income taxes, net of federal
 
(13
)
 
(6
)
 
(70
)
 
69

Change in U.S. tax law
 
—

 
—

 
—

 
—

Other
 
(199
)
 
(570
)
 
(297
)
 
(884
)
Income tax (benefit) provision - at effective income tax rate
 
$
(691
)
 
$
5,921

 
$
(3,360
)
 
$
21,830

 
The income tax benefit and provision for the three months ended September 30, 2018 and 2017 was $691 and $5,921, respectively. The decrease in the income tax provision for the three months ended September 30, 2018 is primarily the result of a reduction in the amount of taxable income earned in the United States (“U.S.”) and Ireland and was partially offset by a decrease in the amount of nondeductible contingent consideration when compared to the same period in 2017. We have not made any additional measurement period adjustments related to U.S. federal tax reform legislation (the “Tax Act”) enacted on December 22, 2017 during the three months ended September 30, 2018. We are still evaluating the provisions of the Tax Act and its impact on our condensed consolidated financial statements.
The income tax benefit and provision for the nine months ended September 30, 2018 and 2017 was $3,360 and $21,830, respectively. The decrease in the income tax provision for the nine months ended September 30, 2018 is primarily the result of decreases in the amount of taxable income in the U.S. and Ireland, and was partially offset by a reduction in the amount of nondeductible contingent consideration when compared to the same period in 2017. We have not made any additional measurement period adjustments related to the Tax Act during the nine months ended September 30, 2018. We are still evaluating the provisions of the Tax Act and its impact on our condensed consolidated financial statements.

The U.S. government enacted the 2018 Tax Cuts & Jobs Act (TCJA) on December 22, 2017. The TCJA reduces the U.S. federal corporate statutory rate to 21% from the previous rate of 35% and has additional requirements that the Company continues to evaluate. The Company is applying the guidance in SAB 118 when accounting for the effects of the TCJA. The Company has not yet completed its accounting for all of the tax effects of the TCJA. The Company continues to consider certain portions of the TCJA and the application of ASC 740 and no adjustments have been made in the unaudited condensed consolidated financial statements.