Income Taxes

The provision (benefit) for income taxes consists of the following:



	Three months ended
	March 31, 2018		March 31, 2017
	(in thousands)
Current	$	560	$	3,591
Deferred	420		720
	$	980	$	4,311

The reconciliation of the Federal statutory income tax rate to the effective income tax rate is as follows:



	Three months ended
	March 31, 2018		March 31, 2017
Federal statutory rate	21.0	%	35.0	%
State income taxes, net of Federal benefit	6.8		3.4
Domestic manufacturing deduction	—		(2.9	)
Excess tax benefits	(8.9	)	(7.1	)
Other	(0.2	)	1.3
Effective tax rate	18.7	%	29.7	%

The Tax Cuts and Jobs Act (the "Act") was enacted on December 22, 2017. Major changes under the Act include the following:


•	Reducing the corporate rate to 21 percent


•	Doubling bonus depreciation to 100 percent for five years


•	Further limitations on executive compensation deductions


•	Eliminating the domestic manufacturing deduction

As a result of these changes, the Company adjusted its deferred tax assets and liabilities in the forth quarter of 2017 using the newly enacted rates for the periods when they are expected to be realized.

The Company's estimated annual 2018 effective tax rate, excluding discrete events, is approximately 28%. We file income tax returns in the U.S., state and foreign income tax returns jurisdictions. We are subject to U.S. examinations for tax years 2014 to present, and to non-U.S. income tax examinations for the tax years of 2013 to present. In addition, we are subject to state and local income tax examinations for the tax years 2013 to present. The Company continues to evaluate its need to file returns in various state jurisdictions. Any interest or penalties would be recognized as a component of income tax expense.