10.	INCOME TAXES

Our operations are conducted through various subsidiaries in a number of countries throughout the world. We have provided for income taxes based upon the tax laws and rates in the countries in which operations are conducted and income is earned.

We operate primarily in

three

jurisdictions, Canada, Australia and the U.S., where statutory tax rates range from

21%

30%.

Our effective tax rate will vary from period to period based on changes in earnings mix between these different jurisdictions.

We compute our quarterly taxes under the effective tax rate method by applying an anticipated annual effective rate to our year-to-date income, except for significant unusual or extraordinary transactions. As of

March 31, 2018,

Australia, Canada and the U.S. are loss jurisdictions for tax accounting purposes, therefore Australia, Canada and the U.S. have been removed from the annual effective tax rate computation for purposes of computing the interim tax provision. Income taxes for any significant and unusual or extraordinary transactions are computed and recorded in the period that the specific transaction occurs.

Our income tax benefit for the

three

months ended

March 31, 2018

totaled

$0.7

million, or

1.2%

of pretax loss, compared to a benefit of

$2.9

million, or

12.4%

of pretax loss, for the

three

months ended

March 31, 2017.

The effective tax rates in

2018

and

2017

were impacted by discrete items totaling $(

1.0

) million and

$0.6

million, respectively.

December 22, 2017,

the Tax Cuts and Jobs Act of

2017

(U.S. Tax Reform) was signed into law making significant changes to the U.S. Internal Revenue Code. During the

first

quarter

2018,

we completed our evaluation of our executive compensation packages under

§162

(m) of the U.S. tax code, and determined that the impact on these was immaterial. To date, the impact to us of the U.S. Tax Reform has been de minimus. The ultimate impact of the U.S. Tax Reform on our financial statements

may

differ from our estimates due to additional analysis, changes in interpretations and assumptions we have made, additional regulatory guidance that

may

be issued, and actions we

may

take a result of the U.S. Tax Reform.