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Income Taxes
6 Months Ended
Jun. 30, 2019
Income Tax Disclosure [Abstract]  
Income Taxes
13.
Income Taxes
The Company’s effective tax rate was 28.0 percent and 27.5 percent for the second quarter and first half of 2019, respectively, as compared to 24.2 percent and 24.8 percent for the second quarter and first half of 2018, respectively. The increase in our tax rate was primarily due to jurisdictional earnings mix, increase in unrecognized tax benefits and lower tax benefits related to employee stock-based compensation.
While our accounting for the impact of the 2017 Tax Cut and Jobs Act (“TCJA”) as of December 31, 2018 was deemed to be complete, amounts recorded were based on prevailing regulations and available information as of December 31, 2018. Additional guidance issued by the Internal Revenue Service (“IRS”) may continue to impact our recorded amounts after December 31, 2018.
Undistributed earnings of certain foreign subsidiaries of the Company amounted to $79.5 million and $64.9 million at June 30, 2019 and December 31, 2018, respectively. These earnings and profits are considered to be indefinitely reinvested. Upon distribution of these earnings in the form of dividends or otherwise, the Company would be subject to withholding taxes payable, where applicable, to foreign countries, but would have no further federal income tax liability.