INCOME TAXES

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

Our effective tax rate for the three and nine months ended September 30, 2019 was 25.9% and 25.4%, respectively, compared to 6.4% and 15.9% for the same periods in 2018, respectively. For the three and nine months ended September 30, 2019 and 2018, the effective tax rate differed from the U.S. federal statutory income tax rate primarily due to state income taxes, non-deductible executive compensation, uncertain tax positions, and discrete tax adjustments related to certain deferred tax assets and liabilities.

The effective tax rate for the three and nine months ended September 30, 2018 was favorably impacted by the adjustments to our existing deferred tax assets resulting from tax accounting method changes affirmatively accepted by the IRS and adjustments to the provisional tax expense for the mandatory deemed repatriation of foreign earnings resulting from completing our calculations of the transition tax as a result of the Tax Cuts and Jobs Act ("Tax Act") and finalizing our 2017 U.S. federal income tax returns.

At both September 30, 2019 and December 31, 2018, cumulative gross unrecognized tax benefits were $7.4 million. If the unrecognized tax benefits as of September 30, 2019 were to be recognized, approximately $5.9 million would affect the effective tax rate. We had $0.9 million and $0.7 million of gross interest and penalties related to unrecognized tax positions accrued as of September 30, 2019 and December 31, 2018, respectively.