Income taxes	9 Months Ended
Sep. 30, 2019
Income taxes
Income taxes	Note 7. Income taxes The 2017 Jobs Act was signed into law on December 22, 2017. The Jobs Act revised the U.S. corporate income tax by lowering the statutory corporate tax rate from 35% to 21% in 2018. 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 nine months ended September 30, 2019 and 2018, our income tax expense has been computed utilizing the estimated annual effective rates of 34.6% and 41.6%, respectively. The difference between the annual effective rate of 34.6% and the statutory Federal income tax rate of 21% in the nine months ended September 30, 2019, is primarily due to the impact of the Jobs Act, which impacted the valuation allowance on foreign tax credits, and limitations on the deductibility of executive compensation under Internal Revenue Code Section 162(m). Due to the reduced U.S. tax rate related to the Jobs Act, 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. The difference between the annual effective rate of 41.6% and the statutory Federal income tax rate of 21% in the nine months ended September 30, 2018, was primarily due to foreign withholding taxes and foreign permanent differences, which were offset in part by foreign tax credits. Income tax expense was $3.7 million and $3.2 million for the three month period ended September 30, 2019 and 2018, respectively. Income tax expense was $9.9 million and $4.5 million for the nine month period ended September 30, 2019 and 2018, respectively. The increase for the three month period, is due to tax expense of $0.8 million in the current period related to adjustments to the 2018 tax return as a result of a decrease in the foreign tax credit utilization, as compared to the prior year period, which included a benefit of $0.5 million related to hurricane relief credits and an increase to foreign tax credit utilization. The increase for the nine month period was primarily due to higher income.

Note 7. Income taxes

The 2017 Jobs Act was signed into law on December 22, 2017. The Jobs Act revised the U.S. corporate income tax by lowering the statutory corporate tax rate from 35% to 21% in 2018. 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 nine months ended September 30, 2019 and 2018, our income tax expense has been computed utilizing the estimated annual effective rates of 34.6% and 41.6%, respectively. The difference between the annual effective rate of 34.6% and the statutory Federal income tax rate of 21% in the nine months ended September 30, 2019, is primarily due to the impact of the Jobs Act, which impacted the valuation allowance on foreign tax credits, and limitations on the deductibility of executive compensation under Internal Revenue Code Section 162(m). Due to the reduced U.S. tax rate related to the Jobs Act, 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. The difference between the annual effective rate of 41.6% and the statutory Federal income tax rate of 21% in the nine months ended September 30, 2018, was primarily due to foreign withholding taxes and foreign permanent differences, which were offset in part by foreign tax credits.

Income tax expense was $3.7 million and $3.2 million for the three month period ended September 30, 2019 and 2018, respectively. Income tax expense was $9.9 million and $4.5 million for the nine month period ended September 30, 2019 and 2018, respectively. The increase for the three month period, is due to tax expense of $0.8 million in the current period related to adjustments to the 2018 tax return as a result of a decrease in the foreign tax credit utilization, as compared to the prior year period, which included a benefit of $0.5 million related to hurricane relief credits and an increase to foreign tax credit utilization. The increase for the nine month period was primarily due to higher income.