Income taxes	6 Months Ended
Jun. 30, 2019
Income taxes
Income taxes	Note 7. Income taxes The 2017 Tax Cut and Jobs Act (“Tax Act”) was signed into law on December 22, 2017. The Tax Act revised the U.S. corporate income tax by, among other things, lowering the statutory corporate tax rate from 35% to 21% in 2018, eliminating certain deductions, imposing a mandatory one-time transition tax, or deemed repatriation tax on accumulated earnings of foreign subsidiaries as of 2017 that were previously tax deferred. The Company generates income in higher tax rate foreign locations, which result in foreign tax credits. The lower federal corporate tax rate reduces the likelihood or our utilization of foreign tax credits created by income taxes paid in Puerto Rico and Latin America, resulting in a valuation allowance. For the six months ended June 30, 2019 and 2018, our income tax expense has been computed utilizing the estimated annual effective rates of 33.1% and 47.7%, respectively. The difference between the annual effective rate of 33.1% and the statutory Federal income tax rate of 21% in the six month period ended June 30, 2019, is primarily due to the impact of the Tax Act and the related impact to the valuation allowance on foreign tax credits. Due to the reduced U.S. tax rate, the Company determined that a portion of its foreign income, which is taxed at a higher rate, will result in the generation of excess foreign tax credits that will not be available to offset U.S. income tax, resulting in a required valuation allowance against the excess foreign tax credits, and raising the annual effective tax rate for the six month period ended June 30, 2019 to 33.1%. The difference between the annual effective rate of 47.7 % and the statutory Federal income tax rate of 21% in the six month period ended June 30, 2018, is primarily due to the impact of the Tax Act and the related impact to the valuation allowance on foreign tax credits. Income tax expense was $3.6 million and $1.6 million for the three month period ended June 30, 2019 and 2018, respectively. Income tax expense was $6.2 million and $1.3 million for the six month period ended June 30, 2019 and 2018, respectively.

Note 7. Income taxes

The 2017 Tax Cut and Jobs Act (“Tax Act”) was signed into law on December 22, 2017. The Tax Act revised the U.S. corporate income tax by, among other things, lowering the statutory corporate tax rate from 35% to 21% in 2018, eliminating certain deductions, imposing a mandatory one-time transition tax, or deemed repatriation tax on accumulated earnings of foreign subsidiaries as of 2017 that were previously tax deferred. The Company generates income in higher tax rate foreign locations, which result in foreign tax credits. The lower federal corporate tax rate reduces the likelihood or our utilization of foreign tax credits created by income taxes paid in Puerto Rico and Latin America, resulting in a valuation allowance.

For the six months ended June 30, 2019 and 2018, our income tax expense has been computed utilizing the estimated annual effective rates of 33.1% and 47.7%, respectively. The difference between the annual effective rate of 33.1% and the statutory Federal income tax rate of 21% in the six month period ended June 30, 2019, is primarily due to the impact of the Tax Act and the related impact to the valuation allowance on foreign tax credits. Due to the reduced U.S. tax rate, the Company determined that a portion of its foreign income, which is taxed at a higher rate, will result in the generation of excess foreign tax credits that will not be available to offset U.S. income tax, resulting in a required valuation allowance against the excess foreign tax credits, and raising the annual effective tax rate for the six month period ended June 30, 2019 to 33.1%. The difference between the annual effective rate of 47.7 % and the statutory Federal income tax rate of 21% in the six month period ended June 30, 2018, is primarily due to the impact of the Tax Act and the related impact to the valuation allowance on foreign tax credits.

Income tax expense was $3.6 million and $1.6 million for the three month period ended June 30, 2019 and 2018, respectively. Income tax expense was $6.2 million and $1.3 million for the six month period ended June 30, 2019 and 2018, respectively.