(14) Income Taxes

The Company’s income tax expense based on income before income taxes for the periods presented was as follows:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2017			2016			2017			2016
	(In thousands, excluding percentages)
Income tax expense	$	4,670		$	9,861		$	1,718		$	17,816
Effective tax rate		23.6	%		32.9	%		10.8	%		33.4	%

The Company’s income tax expense for the three months ended June 30, 2017 totaled $4.7 million, or an effective tax rate of 23.6%, compared to $9.9 million, or an effective tax rate of 32.9%, for the same period of 2016. The Company’s income tax expense for the six months ended June 30, 2017 totaled $1.7 million, or an effective tax rate of 10.8%, compared to $17.8 million, or an effective tax rate of 33.4%, for the same period of 2016. The decreases in income tax expense compared to the same periods of 2016 were attributable to the benefits associated with the Company’s redomicile to the U.K., mix of earnings across jurisdictions, and the excess tax benefits realized in the first quarter of 2017 related to share-based compensation in accordance with ASU 2016-09. For additional information, see Note 1. General and Basis of Presentation – (b) Basic of Presentation.

The Company assesses the need for any deferred tax asset valuation allowances at the end of each reporting period. The determination of whether a valuation allowance for deferred tax assets is needed is subject to considerable judgment and requires an evaluation of all available positive and negative evidence. Based on the assessment at June 30, 2017, and the weight of all available evidence, the Company concluded that maintaining the deferred tax asset valuation allowance for certain entities was appropriate, as the Company currently believes that it is more likely than not that the related deferred tax assets will not be realized.

The deferred tax expenses and benefits associated with the Company’s net unrealized gains and losses on derivative instruments and foreign currency translation adjustments have been recorded in the Accumulated other comprehensive loss, net line item in the accompanying Consolidated Balance Sheets.