Income Taxes

9 Months Ended

Sep. 30, 2019

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



	Three Months Ended				Nine Months Ended
	September 30,		September 30,		September 30,		September 30,
	2019		2018		2019		2018
Effective tax rate	62.2	%	28.9	%	30.3	%	29.7	%

Our effective income tax rate was 62.2% and 28.9% in the third quarters of 2019 and 2018, respectively. This increase is primarily attributed to the net impact of changes in reserves relating to uncertain tax positions. The tax rate in the third quarter of 2019 was higher than the U.S. statutory federal tax rate primarily due to an increase to reserves for uncertain tax positions associated with the Company's operations in China and foreign earnings that are taxed at higher rates. The tax rate in the third quarter of 2018 was higher than the U.S. statutory federal tax rate primarily due to foreign withholding taxes including the impact of a one-time distribution from Taiwan and foreign earnings that are taxed at higher rates.

Our effective income tax rate was 30.3% and 29.7% for the nine months ended September 30, 2019 and 2018, respectively. The tax rate in the first nine months of 2019 was higher than the U.S. statutory federal tax rate primarily due to an increase to reserves for uncertain tax positions associated with the Company's operations in China and foreign earnings that are taxed at higher rates. The tax rate in the first nine months of 2018 was higher than the U.S. statutory federal tax rate primarily due to foreign withholding taxes including the impact of a one-time distribution from Taiwan and foreign earnings that are taxed at higher rates.