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INCOME TAXES
 6 Months Ended
Jun. 30, 2018
Income Tax Disclosure [Abstract]  
INCOME TAXES
INCOME TAXES

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. Our income tax expense from continuing operations, as a percentage of earnings before income taxes, differs from these statutory federal income tax rates as follows:
 
Six Months Ended June 30,
 
Three Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
Statutory federal income tax rate
21.0
 %
 
35.0
 %
 
21.0
 %
 
35.0
 %
Increases (decreases) in rate resulting from:
 
 
 
 
 
 
 
Tax effect of foreign operations
(1.0
)
 
(7.0
)
 
(1.0
)
 
(7.0
)
Foreign withholding taxes
2.0

 
—

 
2.0

 
—

Stock-based compensation
(1.0
)
 
(4.0
)
 
—

 
(1.0
)
Tax on global intangible low-taxed income (GILTI)
1.0

 
—

 
—

 
—

Domestic production activities deduction
—

 
(1.0
)
 
—

 
(1.0
)
Change in valuation allowance
(2.0
)
 
(1.0
)
 
—

 
(2.0
)
Other, net
—

 
(1.0
)
 
(1.0
)
 
(1.0
)
Effective Tax Rate
20.0
 %
 
21.0
 %
 
21.0
 %
 
23.0
 %

Due to changes in our GILTI assumptions and the corresponding revisions to our calculations, the impact of GILTI on our annual effective income tax rate was reduced. We continue to treat 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. We refined this estimate in the first quarter and recorded a $3.9 measurement period adjustment related to certain state deferred tax assets as a discrete tax benefit. This item decreased our effective tax rate by 2% for the six months ended June 30, 2018. No SAB 118 adjustments have been identified or recorded for the three months ended June 30, 2018, based on provisional estimates as of July 18, 2018. 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).