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INCOME TAXES
6 Months Ended
Jun. 30, 2019
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 9.  INCOME TAXES

 

We record income taxes for interim periods based on an estimated annual effective tax rate.  The estimated annual effective tax rate is recomputed on a quarterly basis and may fluctuate due to changes in forecasted annual operating income, positive or negative changes to the valuation allowance for net deferred tax assets, and changes to actual or forecasted permanent book to tax differences. 

 

Our effective tax rates were (118.1)% and 0.2% for the three months ended June 30, 2019 and 2018, respectively, and 131.1% and 0.2% for the six months ended June 30, 2019 and 2018, respectively. The changes in our effective tax rates and the primary reason why these effective tax rates differ from the applicable federal statutory rates are the fluctuations in earnings among the various jurisdictions in which we operate, increases in valuation allowances and foreign tax rate differentials.