Income Taxes



	Three Months Ended March 31,						Six Months Ended March 31,
(dollars in thousands)	2018			2017			2018			2017
Provision for income taxes	$	6,123		$	5,659		$	19,491		$	8,023
Effective tax rate	29.0		%	24.5		%	57.1		%	20.8		%

For the three months ended March 31, 2018, our effective tax rate increased by 4.5 percentage points compared to the same period in the prior year primarily due to (i) a decrease of the U.S. federal statutory tax rate from 35% to 21% related to the enactment of the Tax Cuts and Jobs Act (the Tax Act) and (ii) higher discrete tax benefits for the three months ended March 31, 2017 related to a one-time tax adjustment regarding our Canadian operations and excess tax benefits associated with stock-based compensation awards.

For the six months ended March 31, 2018, our effective tax rate increased by 36.3 percentage points compared to the same period in the prior year primarily due to (i) higher discrete tax benefits for the six months ended March 31, 2017 related to excess tax benefits associated with stock-based compensation awards and the release of a valuation allowance on a net operating loss of a foreign subsidiary and (ii) unfavorable provisional tax adjustments related to the enactment of the Tax Act, as further described below, which were partially offset by a decrease of the U.S. federal statutory tax rate from 35% to 21% related to the enactment of the Tax Act.

For the three months ended December 31, 2017, the Company recorded as a result of the Tax Act (1) a provisional $37.7 million of charge to tax expense related to the remeasurement of deferred tax assets and liabilities, (2) a provisional $37.7 million tax benefit related to the partial reversal of a deferred tax liability for unremitted foreign earnings and (3) a provisional $9.1 million charge to tax expense related to the imposition of a one-time repatriation tax on accumulated earnings of our foreign subsidiaries. For the three months ended March 31, 2018, the Company reported a $0.1 million favorable adjustment related to the remeasurement of deferred tax assets and liabilities. The determination of the impact of the income tax effects of the items reflected as provisional amounts may change, possibly materially, following review of historical records, refinement of calculations, modifications of assumptions and further interpretation of the Tax Act based on U.S. Treasury regulations and guidance from the Internal Revenue Service and state tax authorities. The Company will report revised provisional amounts in accordance with SAB 118 when additional information and guidance has become available.