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INCOME TAXES
 9 Months Ended
Sep. 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:
 
Nine Months Ended September 30,
 
Three Months Ended September 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
3.0

 
—

 
3.0

 
—

Stock-based compensation
(1.0
)
 
(3.0
)
 
(2.0
)
 
(1.0
)
Tax on global intangible low-taxed income (GILTI)
1.0

 
—

 
1.0

 
—

Domestic production activities deduction
—

 
(1.0
)
 
—

 
(1.0
)
Tax benefit for outside basis in subsidiary
—

 
(2.0
)
 
—

 
(7.0
)
Change in valuation allowance
(2.0
)
 
(1.0
)
 
—

 
—

Other, net
(1.0
)
 
(1.0
)
 
(1.0
)
 
(2.0
)
Effective Tax Rate
20.0
 %
 
20.0
 %
 
21.0
 %
 
17.0
 %


TCJA subjects a U.S. corporation to tax on GILTI. Under GAAP, we can make an accounting policy election to either treat taxes due on the GILTI inclusion as a current period expense, or factor such amounts into the measurement of our deferred taxes. In the third quarter, we completed our evaluation and finalized our accounting policy, electing to treat taxes due on the GILTI inclusion as a period expense. There was no impact to our Consolidated Condensed Statements of Operations or Consolidated Condensed Balance Sheets resulting from this policy election.

At December 31, 2017, we recorded certain provisional 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. Additionally, in the third quarter we recorded measurement period adjustments related to the deemed repatriation tax and our deferred tax revaluation of $1.3 and $.5, respectively, as discrete tax benefits. In aggregate, these items decreased our effective tax rate by 2% for both the nine and three months ended September 30, 2018. We continue to review our SAB 118 provisional amounts resulting from TCJA and will complete our accounting in the fourth quarter (see Note 2).