INCOME TAXES

6 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

In determining its interim provision for/(benefit from) 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 rates for the three months ended June 30, 2019 and 2018 were 16.6% and 12.0%, respectively, and 11.3% and (9.2)% during the six months ended June 30, 2019 and 2018, respectively.

The Company’s effective tax rates benefited from excess tax benefits recorded upon vesting or exercise of stock-based awards of $4,741 and $5,440 during the three months ended June 30, 2019 and 2018, respectively, and $16,254 and $10,130 during the six months ended June 30, 2019 and 2018, respectively.

The interim benefit from income taxes in the three and six months ended June 30, 2018 was favorably impacted by the recognition of $706 and $25,340, respectively, of net deferred tax assets resulting from the Company’s decision to change the tax status and to classify most of its foreign subsidiaries as disregarded for U.S. income tax purposes. This was partially offset by a provisional $2,157 increase in income taxes payable associated with the one-time transition tax on accumulated foreign subsidiary earnings not previously subject to U.S. income tax imposed by the Tax Cuts and Jobs Act (“U.S. Tax Act”) recorded in the first quarter of 2018 and impacting the six months ended June 30, 2018.