11 .	Income Taxes

The Company files income tax returns in the United States Federal jurisdiction, in a limited number of foreign jurisdictions and in many state jurisdictions. With few exceptions, the Company is

longer subject to United States Federal, state or foreign income tax examinations for years before

2013.

December

22,

2017,

the Tax Cuts and Jobs Act of

2017

(the “TCJA”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are

not

limited to, a federal corporate income tax rate decrease from

35%

21%

effective for tax years beginning after

December

31,

2017,

the transition of U.S. international taxation from a worldwide tax system to a territorial system, and a

one

-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of

December

31,

2017.

December

22,

2017,

Staff Accounting Bulletin

No.

118

was issued to address the application of U.S. GAAP in situations when a registrant does

not

have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the TCJA. Additional work is necessary for a more detailed analysis of the Company’s deferred income tax assets and liabilities and its historical foreign earnings as well as potential correlative adjustments. The Company also considers it likely that further technical guidance regarding certain components of the TCJA, as well as clarification regarding state income tax conformity to current federal tax code,

may

be issued. Any subsequent adjustment to the amounts recorded in the

fourth

quarter of

2017

will be recorded to current income tax expense when the analysis is complete in the

fourth

quarter of

2018.

Through

September

30,

2018,

the Company had

not

made any material adjustments to the provisional amount.

The Company recorded an income tax benefit from continuing operations at an estimated effective income tax rate of

14.2%

and

23.5%

for the

three

and

nine

months ended

September

30,

2018,

respectively, and an income tax benefit from continuing operations at an estimated effective income tax rate of

2.5%

and

19.7%

for the

three

and

nine

months ended

September

30,

2017,

respectively. The Company’s estimated effective income tax rate for the

three

and

nine

months ended

September

30,

2018

was impacted by the nontaxable

$21.9

million bargain purchase gain recorded in connection with the acquisition of Ameron, as well as the estimated changes in the Company’s valuation allowance and the tax windfall from share-based compensation.

The Company had

$4.1

million of unrecognized income tax benefits as of

September

30,

2018

and

December

31,

2017.

The Company does

not

believe it is reasonably possible that the total amounts of unrecognized income tax benefits will change in the following

twelve

months; however, actual results could differ from those currently expected. Effectively all of the unrecognized income tax benefits would affect the Company’s effective income tax rate if recognized at some point in the future. The Company recognizes interest and penalties related to uncertain income tax positions in Income tax benefit from continuing operations.