Income Taxes

6 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

INCOME TAXES

Income Taxes

The effective tax rate on loss from continuing operations was (20.0) percent for the three months ended June 30, 2019 and (59.5) percent for the six months ended June 30, 2019. The tax expense on the loss is due primarily to the impacts of the U.S. Tax Cuts and Jobs Act (Tax Act) on the estimated projected tax rate, more specifically, the impacts of the global intangible low-taxed income (GILTI) and base erosion and anti-abuse tax (BEAT). In addition, for the six months ended June 30, 2019, the Company collapsed

its Barbados structure to meet the covenant requirements under its credit agreement, which resulted in additional discrete tax expense, which was offset in part by the valuation allowance release relating to the Company’s nondeductible interest expense that was carried forward from December 31, 2018. The above items noted as well as the Company’s jurisdictional income (loss) mix at varying statutory rates are the primary drivers of the quarterly tax rate.

The effective tax rate on loss from continuing operations was 18.8 percent for the three months ended June 30, 2018 and 5.1 percent for the six months ended June 30, 2018. The benefit on the losses for these periods was decreased primarily due to nondeductible permanent discrete adjustment associated with the goodwill impairment charge and the impacts of the Tax Act, more specifically, impacts related to GILTI on the estimated annual tax rate.