8.	Income Taxes

The Company’s effective tax rate (“ETR”) is calculated quarterly based upon current assumptions relating to the full year’s estimated operating results and various tax-related items. The Company’s normal annual ETR typically ranges from 38% to 40% of pre-tax income. The 2017 second quarter and year-to-date ETR was 33.3% and 38.5%, respectively, and 2016 second quarter and year-to-date ETR was 29.6% and (4.6)%, respectively.

The ETR was lower than the normal range in the 2017 second quarter primarily due to tax benefits from the Work Opportunity Tax Credit (WOTC) and Credit for Increasing Research Activities (R&D).

The ETR was lower than the normal range in the 2016 second quarter primarily due to the extension of the WOTC and R&D tax credits. The ETR was lower than the normal range in the 2016 year-to-date period primarily due to the non-deductible goodwill impairment charge totaling $21.5 million, and due to tax benefits for the WOTC and R&D tax credits.

At June 30, 2017, the undistributed earnings of foreign subsidiaries totaled approximately $23.0 million, which are considered to be indefinitely reinvested, and accordingly, no provision for taxes has been provided thereon. Given the complexities of the foreign tax calculations, it is not practicable to compute the tax liability that would be due upon distribution of those earnings in the form of dividends or liquidation or sale of the foreign subsidiaries.