INCOME TAXES

Our worldwide effective income tax rate on continuing operations was 18% for the first quarter of 2018, compared to 20% for the same quarter last year. The U.S. statutory federal income tax rate was significantly impacted by the enactment of TCJA in the fourth quarter of 2017, which reduced our U.S. federal corporate income tax rate from 35% in 2017 to 21% in 2018. Both years benefited from earnings in non-U.S. jurisdictions, reducing our effective rate by 1% in 2018 and 7% in 2017. Likewise, our first quarter tax rate benefited in both years from stock compensation payments, 2% in 2018 and 7% in 2017. Several smaller items comprised the remaining 1% net decrease in 2017. Other provisions of TCJA had a net neutral effect on our 2018 first quarter effective tax rate and include:


•	2% increase from Global Intangible Low-Taxed Income (GILTI)


•	2% increase for incremental foreign withholding taxes related to expected future cash repatriations


•	5% reduction related to certain state deferred tax assets


•	1% net increase related to other TCJA items, including the executive compensation limitation provisions.

We have treated GILTI as a period cost in our estimated annual effective tax rate until such time that we establish our accounting policy, which we will do no later than the fourth quarter of 2018.

At December 31, 2017, we recorded certain estimated amounts related to TCJA in accordance with SAB 118. In the first quarter, we refined our estimate and recorded a $3.9 measurement period adjustment related to certain state deferred tax assets, resulting from new guidance issued during the quarter. This change to our SAB 118 (see Note 2 - Accounting Standard Updates) deferred tax provisional amount at December 31, 2017, was recorded as a discrete item in the first quarter, decreasing our quarterly effective tax rate by 4%. No other adjustments to the SAB 118 provisional items we recorded previously are required at this time. However, our accounting for these items is also not yet final, but will be completed no later than the fourth quarter of 2018 in accordance with SAB 118 (see Note 2).