Income Tax



	Three Months Ended				Six Months Ended
	June 30, 2017		June 30, 2016		June 30, 2017		June 30, 2016
Effective tax rate	27	%	11	%	26	%	10	%

Our effective tax rates were lower than the U.S. federal statutory rate of 35% primarily due to lower effective income tax rates applicable to our foreign businesses, driven by lower statutory income tax rates and tax planning impacts on statutory taxable income, as well as the impact of discrete items. The increase in the effective tax rate during the second quarter and first half of 2017 versus 2016, is primarily driven by the inclusion of 100% of MillerCoors' pretax income following the completion of the Acquisition, which is subject to the U.S. federal and state income tax rates, as well as the favorable impacts of tax benefits recognized in the prior year from transaction-related costs resulting from the Acquisition and favorable tax treatment associated with the sale of our Vancouver brewery in the first quarter of 2016. These drivers were further impacted by a reduction of net discrete tax benefits recognized in 2017. Specifically, our total net discrete tax benefit was $1.3 million and $9.7 million in the second quarter and first half of 2017, respectively, versus a $6.5 million and $12.2 million net discrete tax benefit recognized in the second quarter and first half of 2016, respectively. The decrease in net discrete tax benefits in 2017 was driven by discrete tax expense of $13.6 million related to the recognition of a liability for uncertain tax positions established during the second quarter of 2017, which was partially offset by the release of valuation allowances in certain jurisdictions during the second quarter of 2017, as well as an increase in excess tax benefits from share-based compensation in the first half of 2017.

Our tax rate is volatile and may move up or down with changes in, among other things, the amount and source of income or loss, our ability to utilize foreign tax credits, excess tax benefits from share-based compensation, changes in tax laws, and the movement of liabilities established pursuant to accounting guidance for uncertain tax positions as statutes of limitations expire, positions are effectively settled, or when additional information becomes available. There are proposed or pending tax law changes in various jurisdictions and other changes to regulatory environments in countries in which we do business that, if enacted, may have an impact on our effective tax rate.