Income Taxes

The Company’s provision for income taxes for the

six

months ended

June 30, 2018

and

2017

is based on the estimated annual effective tax rate, plus discrete items. The following table presents the provision for income taxes and the effective tax rates for the

three

and

six

months ended

June 30, 2018

and

2017

(in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Income (loss) before Income Taxes	$	(156	)	$	(10,658	)	$	1,819		$	(18,999	)
Income tax benefit		(1,191	)		(2,261	)		(598	)		(6,195	)
Effective tax rate		763.5	%		21.2	%		-32.9	%		32.6	%

The difference between the Company’s effective tax rate for the

three

and

six

months ended

June

30,2018

and

2017

and the US statutory rates of

21%

and

35%,

respectively, primarily relates to nondeductible expenses, federal income tax credits, state income taxes (net of federal benefit), and the effect of taxes on foreign earnings and certain discrete items. At

June 30, 2018,

the Company’s estimated annual effective tax rate also includes the impact of the new Global Intangible Low-Taxed Income (‘‘GILTI’’) tax, which is effective in

2018

as a result of the Act enacted on

December 22, 2017.

See further discussion below on our accounting policy associated with GILTI.

The Company recorded discrete tax items for the

six

months ended

June 30, 2018

related to tax-deductible IPO costs and restricted stock unit costs in excess of book deductible costs totaling $(

0.4

) million and $(

0.7

) million, respectively. At

June 30, 2018,

our analysis is still incomplete for provisional amounts recorded for the Act at

December 31, 2017

and as such,

adjustments have been recorded in this period. The provisional amounts recorded at

December 31, 2017

that continue to be evaluated include the estimation of the transition tax, state tax conformity issues of federal law changes, and changes in estimates from revaluing deferred tax liabilities that can result from filing the

2017

U.S. income tax return.

Global Intangible Low-Taxed Income:

The Act subjects a US shareholder to tax on GILTI earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic

740,

No.

Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. Given the complexity of the GILTI provisions, we are still evaluating the effects of the GILTI provisions and have

not

yet determined our accounting policy. At

June 30, 2018,

because we are still evaluating the GILTI provisions and our analysis of future taxable income that is subject to GILTI, we have included GILTI related to current-year operations only in our estimated annual effective tax rate and have

not

provided additional GILTI on deferred items.