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INCOME TAXES
3 Months Ended
Mar. 31, 2017
Income Tax Disclosure [Abstract]  
INCOME TAXES
INCOME TAXES
In determining its quarterly provision for income taxes, the Company uses an estimated annual effective tax rate, which is based on expected annual profit before tax, statutory tax rates and tax planning opportunities available in the various jurisdictions in which the Company operates. Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability in the effective tax rates from quarter to quarter. The Company’s worldwide effective tax rate for the three months ended March 31, 2017 and 2016 was 17.3% and 21.0%, respectively. The decrease in the three months ended March 31, 2017 as compared to the same period last year was primarily due to the recognition of excess tax benefits of $1,695 following the adoption of ASU No. 2016-09 in the first quarter of fiscal year 2017. Refer to Note 10, “Recent Accounting Pronouncements,” for further information.
Our Belarus subsidiary is eligible for certain income tax holiday benefits granted by the local government for its export activities conducted within the Hi-Tech Park. Income tax holidays are effective for 15 years starting from 2006. Other subsidiaries of the Company are primarily taxed at the jurisdictions’ statutory rate most of which are lower than U.S. federal statutory rates.