|9 Months Ended|
Sep. 30, 2018
8. INCOME TAXES
Our effective tax rates were 25.2 percent and 23.1 percent for the three and nine months ended September 30, 2018, respectively. The effective tax rates for the three and nine months ended September 30, 2017, were 33.4 percent and 33.8 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 from return to accrual adjustments for tax returns filed in 2018 related to 2017.
A tax benefit of $0.5 million and $3.1 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 three and nine months ended September 30, 2018, respectively.
At September 30, 2018, the net deferred tax liability of $149.9 million consisted of net long-term deferred tax assets of $17.6 million and net long-term deferred tax liabilities of $167.5 million. The increase of the net deferred tax liability was primarily related to the acquisition of USI and related tax elections, return to accrual adjustments for tax returns filed in 2018 related to 2017, and other minor legal entity restructuring.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef