Income Taxes

6 Months Ended

Jun. 30, 2019

Note 7 — Income Taxes

We believe that our recorded deferred tax assets and liabilities are reasonable. However, tax laws and regulations are subject to interpretation, and the outcomes of tax disputes are inherently uncertain; therefore, our assessments can involve a series of complex judgments about future events and rely heavily on estimates and assumptions.

The effective tax rates for the three- and six-month periods ended June 30, 2019 were 14.6% and 15.0%, respectively. The effective tax rates for the three- and six-month periods ended June 30, 2018 were 1.6% and 2.5%, respectively. The increase was primarily attributable to the earnings mix between our higher and lower tax rate jurisdictions.

Income taxes are provided based on the U.S. statutory rate and the local statutory rate for each foreign jurisdiction adjusted for items that are allowed as deductions for federal and foreign income tax reporting purposes, but not for book purposes. The primary differences between the U.S. statutory rate and our effective rate are as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018

U.S. statutory rate	21.0	%	21.0	%	21.0	%	21.0	%
Foreign provision	(8.4	)	(19.6	)	(9.0	)	(20.2	)
Other	2.0		0.2		3.0		1.7
Effective rate	14.6	%	1.6	%	15.0	%	2.5	%