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Income Taxes
6 Months Ended
Jun. 30, 2018
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES
Our provision for income taxes for the three months ended June 30, 2018 and 2017 reflected effective tax rates of 37.0% and 35.1%, respectively. Our provision (benefit) for income tax for the six months ended June 30, 2018 and 2017 reflected effective tax rates of 36.1% and 48.9%, respectively. The year-over-year decrease in the effective tax rate was primarily due to favorable changes in forecasted earnings mix and reduced impact of losses in jurisdictions with a full valuation allowance. In addition, individual tax items, combined with higher profitability in the current period, had less of an impact on the effective rate in the six months ended June 30, 2018 as compared to the same periods in 2017.
The effective tax rates for the three and six months ended June 30, 2018 reflect the reduced U.S. federal corporate tax rate of 21% as a result of the Tax Cuts and Jobs Act. The Company also reflected provisional estimates related to the tax imposed on the deemed repatriation to the United States of the undistributed earnings of certain of the Company’s non-U.S. subsidiaries in 2017. During the second quarter of 2018, we did not make any adjustments to the provisional amounts. However, we are continuing to gather additional information to complete our accounting for this item. In addition, the Company is also assessing the other aspects of tax reform that apply in 2018, such as Global Intangible Low Tax Income, Base Erosion Anti-Abuse Tax, Foreign Derived Intangible Income, and the new limit on interest deductions. While applicable, the impacts are not expected to be significant during 2018 and we will continue to evaluate these provisions during subsequent quarters.
Our effective tax rate can fluctuate depending on our country mix of earnings, since our foreign earnings are generally subject to higher tax rates than in the United Kingdom.