Income Taxes

In 2017, newly enacted tax legislation revised the corporate income tax rate from 35% to 21% effective January 1, 2018. The change in tax rates was the primary reason for the difference in the Company’s effective tax rate as compared with the first quarter of FY 2017.

The effective income tax rate differed from the expected rate as shown below:



	Three Months Ended March 31,
	2018			%		2017			%
Expected income taxes	$	44,697		21.0		$	67,109		35.0
Increase (reduction) in income taxes resulting from:
Low income housing investments	(3,325		)	(1.6	)	(4,649		)	(2.4	)
Share-based awards	(2,199		)	(1.0	)	(5,673		)	(3.0	)
Other	(42		)	—		(2,224		)	(1.2	)
Income tax expense (benefit) from continuing operations	$	39,131		18.4		$	54,563		28.4

As of December 31, 2017, the Company recorded $877 million of tax benefits in net income as a result of re-measuring its deferred tax assets and liabilities using the lower corporate tax rate as of the legislation’s enactment date. The Company was able to determine that the adjustment recorded in 2017 was a reasonable estimate of the impact of the tax legislation in accordance with SAB 118. However, the Company has not completed its analysis and will continue to analyze relevant information to complete the accounting for income taxes which may result in an adjustment to tax expense in 2018. The accounting is expected to be complete when the 2017 U.S. corporate income tax returns are filed in 2018. The Company did not make any adjustments to this estimate for the period ended March 31, 2018.