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Income Taxes
9 Months Ended
Sep. 30, 2018
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES
Our provision for income taxes for the three months ended September 30, 2018 and 2017 reflected effective tax rates of 33.2% and 48.6%, respectively. Our provision (benefit) for income tax for the nine months ended September 30, 2018 and 2017 reflected effective tax rates of 35.0% and 48.8%, 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 nine months ended September 30, 2018 as compared to the same periods in 2017.
The effective tax rates for the three and nine months ended September 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 third 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 continuing to assess other aspects of U.S. tax reform that apply in 2018, including the Global Intangible Low Tax Income regime, the Base Erosion Anti-Abuse Tax, the Foreign Derived Intangible Income regime, and the new limitation on the deductibility of interest expense. We have included estimates for the impacts of these items, and they are not expected to be material for 2018.
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.