Taxes on income from continuing operations



	Three Months Ended		Nine Months Ended
	September 30, 2018	October 1, 2017	September 30, 2018	October 1, 2017
Effective income tax rate	(2.3)%	11.2%	11.8%	8.9%

The Tax Cuts and Jobs Act (the “TCJA”) was enacted on December 22, 2017. The legislation significantly changed U.S. tax law by, among other things, permanently reducing corporate income tax rates from a maximum of 35% to 21%, effective January 1, 2018; implementing a territorial tax system, by generally providing for, among other things, a dividends received deduction on the foreign source portion of dividends received from a foreign corporation if specified conditions are met; and imposing a one-time repatriation tax on undistributed post-1986 foreign subsidiary earnings and profits, which are deemed repatriated for purposes of the tax. In addition, the TCJA imposes two new U.S. tax base erosion provisions: (1) the global intangible low-taxed income ("GILTI") provisions and (2) the base erosion and anti-abuse tax ("BEAT") provisions, which are explained in more detail in Note 13 to the Company’s consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2017.

In accordance with the applicable provisions of SEC Staff Accounting Bulletin No. 118, the Company included in its consolidated financial statements as of December 31, 2017 provisional amounts reflecting the tax impact related to deemed repatriated earnings and the revaluation of deferred tax assets and liabilities. During the third quarter of 2018, the Company recorded a $2.1 million tax benefit to adjust its initial provisional estimates for the TCJA in its provision for income taxes. The adjustment specifically related to the Company's initial estimate of the revaluation of certain deferred tax balances as a result of the reduced corporate income tax rate. To date, the Company has not made any other significant changes to its initial provisional estimates included in its consolidated financial statements as of December 31, 2017 and continues to evaluate the impact of the TCJA. Once the Company's accounting for the income tax effects of the TCJA is complete, the amounts with respect to the income tax effects of the TCJA may differ from the provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, additional regulatory guidance that may be issued, and actions the Company may take as a result of the TCJA.

The effective income tax rate for the three and nine months ended September 30, 2018 was (2.3)% and 11.8%, respectively, and was 11.2% and 8.9% for the three and nine months ended October 1, 2017, respectively. The effective income tax rate for the three and nine months ended September 30, 2018 as compared to the prior year periods reflects impacts of the TCJA, including the benefit of a lower U.S. corporate tax rate of 21.0% from the enactment of the TCJA, partially offset by a tax cost associated with GILTI. In addition, the effective tax rate for the three and nine months ended September 30, 2018 includes a tax benefit associated with the asset impairment charges described in Note 5, excess tax benefits associated with share based payments, and a non-deductible contingent consideration expense recognized in connection with an increase in the fair value of the NeoTract contingent consideration liability. The income tax rate for the nine months ended September 30, 2018 as compared to the prior year period reflects non-deductible termination benefits and other costs incurred in connection with the 2018 Footprint realignment plan. The effective tax rate for the nine months ended October 1, 2017 reflected a tax benefit associated with costs incurred in connection with the Vascular Solutions acquisition.