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Income Taxes
9 Months Ended
Sep. 30, 2018
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
 
For the three months ended September 30, 2018, the Company recognized an income tax expense of $5.6 million on pre-tax earnings of $20.1 million, compared to $7.3 million income tax expense on pre-tax earnings of $19.3 million for the three months ended September 30, 2017. For the nine months ended September 30, 2018, the Company recognized an income tax expense of $16.9 million on pre-tax earnings of $63.5 million compared to $21.3 million income tax expense on pre-tax earnings of $57.3 million for the nine months ended September 30, 2017. The effective tax rate for the nine months ended September 30, 2018 was 26.6% compared to 37.2% for the nine months ended September 30, 2017. The effective tax rate for the nine months ended September 30, 2018 decreased primarily due to the reduction in the federal income tax rate to 21% per the 2017 Tax Act.

For the year ended December 31, 2017, the Company recorded provisional estimates of the tax effects of the 2017 Tax Act in accordance with SAB 118. As of September 30, 2018, the Company has finalized its accounting for the tax effects of the 2017 Tax Act in accordance with SAB 118. During the quarter ended September 30, 2018, the Company recorded a net benefit of $1.2 million for the finalization of its transition tax liability calculation and the rate reduction for deferred tax purposes. No further adjustments under the 2017 Tax Act will be recorded. 

As of September 30, 2018, the Company has not identified any uncertain tax positions that would have a material impact on the Company’s financial position. The Company recognizes potential interest and penalties related to uncertain tax positions, if any, in income tax expense. During the quarter ended September 30, 2018, the Company recognized an uncertain tax position of $0.3 million and related interest expense of $0.2 million due to an ongoing state tax examination.
 
The tax years that remain subject to examination for the Company’s major tax jurisdictions at September 30, 2018 are shown below:
 
2015 – 2017         United States — federal income tax
2007 – 2017         United States — state and local income tax
2014 – 2017         Canada and Puerto Rico