the years ended and income before income taxes consists of the following:

:

Federal Tax Reform

December 22, 2017,

was enacted which, among other changes, reduces the U.S. federal corporate tax rate from to effective The Tax Act makes broad and complex changes to the U.S. tax code and it will take time to fully analyze the impact of the changes. Based on the information available, and the current interpretation of the Tax Act, the Company was able to make a reasonable estimate and recorded a provisional net tax benefit related to the remeasurement of the deferred tax assets and liabilities due to the reduction in the U.S. federal corporate tax rate, offset by the -time mandatory deemed repatriation tax, payable over years. Pursuant to the Staff Accounting Bulletin published by the United States Securities and Exchange Commission on addressing the challenges in accounting for the effects of the Tax Act in the period of enactment, companies must report provisional amounts for those specific income tax effects of the Tax Act for which the accounting is incomplete but a reasonable estimate can be determined. Those provisional amounts will be subject to adjustment during a measurement period of up to year from the enactment date. Pursuant to this guidance, the estimated impact of the Tax Act is based on a preliminary review of the new tax law and projected future financial results and is subject to revision based upon further analysis and interpretation of the Tax Act and to the extent that future results differ from currently available projections. The Company’s accounting for the following elements of the Tax Act is incomplete. However, the Company was able to make reasonable estimates and recorded a provisional net tax benefit of million related to the following elements of the Tax Act pursuant to the Staff Accounting Bulletin referred to above:

In addition, as a result of the Tax Act, the Company determined that it would longer indefinitely reinvest the earnings of its Canadian subsidiary and recorded the withholding tax of associated with this planned repatriation.

’s income tax expense as reported in the accompanying consolidated financial statements and the income tax expense that would be calculated applying the U.S. federal income tax rate of for and on pretax income was as follows:

December 31,

and were comprised of the following:

not

, or all, of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company considers projected future taxable income, carry-back opportunities, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods which the deferred tax assets are deductible, the Company believes it is more likely than that it will realize the benefits of these deductible differences excluding the foreign tax credit carryforward.

December 31,

201

and of and respectively, excluding interest of and at and respectively. Of these amounts, and at and respectively, represents the net unrecognized tax benefits that, if recognized, would favorably impact the effective income tax rate. The change in the unrecognized tax benefits for and is as follows:

returns and a Canada federal and provincial income tax return. All years prior to are now closed for US federal income tax and for years prior to for state income tax returns, and exposure items exist for these years. The Company completed a United States federal tax examination for the tax year ended in the quarter of The to Canada federal and provincial income tax returns remain open to examination.