Income Taxes

6 Months Ended

Jun. 30, 2019

The effective tax rates for the three and six-month periods ended June 30, 2019 and 2018 are as follows:



	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2019		2018		2019		2018
Effective tax rate	25.1	%	37.7	%	22.7	%	30.2	%

Our effective income tax rate was 25.1% and 37.7% in the second quarters of 2019 and 2018, respectively. This decrease was primarily attributed to the 2018 withholding tax payment of $1,703 on a one-time distribution from Taiwan. The tax rate in the second quarter of 2019 was higher than the U.S. statutory federal tax rate primarily due to state taxes and foreign earnings that are taxed at higher rates. The tax rate in the second quarter of 2018 was higher than the U.S. statutory federal tax rate primarily due to foreign withholding taxes, state taxes and foreign earnings that are taxed at higher rates.

Our effective income tax rate was 22.7% and 30.2% for the six months ended June 30, 2019 and 2018, respectively. This decrease was primarily attributed to the 2018 withholding tax payment of $1,703 on a one-time distribution from Taiwan. The tax rate in the second quarter of 2019 was higher than the U.S. statutory federal tax rate primarily due to higher foreign tax rates applicable on foreign earnings offset by tax benefits recorded upon vesting of restricted stock units. The tax rate in the second quarter of 2018 was higher than the U.S. statutory federal tax rate primarily due to foreign withholding taxes, state taxes and higher foreign tax rates applicable on foreign earnings.

We have elected to recognize the tax on the global intangible low-taxed income (GILTI) as a period expense in the period the tax is incurred, and we have included a provisional estimate for GILTI in our estimated annual effective tax rate.