Income Taxes

3 Months Ended

Mar. 31, 2019

INCOME TAXES

The effective tax rates for the three months ended March 31, 2019 and 2018 were 24.0% and 25.0%, respectively.

There were discrete tax benefits of $2,338 and $6,506 for the three months ended March 31, 2019 and 2018, respectively. The net discrete benefits for both years are primarily related to the excess deduction related to equity based compensation. In addition to the discrete items, the tax expense for the three months ended March 31, 2018 was increased by an additional $2,163 related to the Global Intangible Low Taxed Income provisions of the Tax Cuts and Jobs Act; this amount was later reversed in the third quarter of 2018 as a result of IRS guidance issued in September 2018. In accordance with SAB 118, which provided guidance on accounting for the tax effects of the Tax Cuts and Jobs Act, the Company was granted a measurement period of up to one year from enactment to complete the accounting related to this tax act under ASC 740, which concluded in the quarter ended December 31, 2018.

The Company accounts for its uncertain tax return reporting positions in accordance with the accounting standards for income taxes. The Company continues to classify interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes. The following is a summary of the activity of the Company’s unrecognized tax benefits for three months ended March 31, 2019 and 2018:


	2019		2018
Balance at January 1	$	11,206	$	10,370

Additions for tax positions in current period	28		750
Foreign currency translation	94		—
Balance at March 31	$	11,328	$	11,120

Substantially all of the liability for uncertain tax benefits related to various federal, state and foreign income tax matters would benefit the Company's effective tax rate, if recognized.