Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

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Income Taxes
6 Months Ended
Jun. 30, 2018
Income Taxes  
Income Taxes

8. INCOME TAXES    

 

Our effective tax rates were 25.5 percent and 21.3 percent for the three and six months ended June 30, 2018, respectively.  The effective tax rates for the three and six months ended June 30, 2017, were 38.1 percent and 34.4 percent, respectively.  The 2018 rates are lower due to the lower Federal tax rate enacted by the Tax Cuts and Jobs Act and the impact of discrete benefits related to share-based compensation, partially offset by State tax adjustments from rate changes related to the USI acquisition and other minor legal entity restructuring.

 

A tax benefit of $2.6 million related to share-based compensation was recognized in our Condensed Consolidated Statements of Operations as a discrete item in income tax expense for the six months ended June 30, 2018.

 

At June 30, 2018, the net deferred tax liability of $151.0 million consisted of net long-term deferred tax assets of $17.6 million and net long-term deferred tax liabilities of $168.6 million.  The increase of the net deferred tax liability was primarily related to the acquisition of USI, related tax elections, and other minor legal entity restructuring.