CLB 2018 Annual Report

22 Foreign exchange gains and losses for the years ended December 31, 2018, 2017 and 2016 are summarized in the following table (in thousands): (Gains) losses by currency 2018 2017 2016 Angola Kwanza Spot $ 202 $ (3) $ 408 Australian Dollar 183 12 136 British Pound 158 (92) 807 Canadian Dollar 458 (62) (130) Euro 208 1,413 (49) Indonesian Rupiah 297 80 29 Mexican Peso 141 23 (47) Turkish Lira 300 32 93 Other currencies, net 651 (452) 529 Total (gain) loss, net $ 2,598 $ 951 $ 1,776 Interest Expense Interest expense increased by $2.6 million to $13.3 million in 2018 compared to 2017 primarily due to increased average borrowings on our revolving Credit Facility which was used to fund an acquisition for $49.1 million in September 2018. Income Tax Expense Our effective tax rate was 24.2%, 18.4%, and 14.3% for 2018, 2017, and 2016, respectively. Income tax expense of $25.4 million in 2018 increased by $7.2 million compared to $18.2 million in 2017 due to an increase in taxable income in 2018, primarily in the United States. Income tax expense associated with taxable income recognized in the United States increased by $4.9 million in 2018 compared to 2017. No other jurisdiction in which we operate had a material change in income tax expense. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the "TCJA") was signed into law reducing the U.S. corporate income tax rate to 21%, effective January 1, 2018. During 2018, various proposed regulations have been released, providing guidance on identified issues and topics regarding the TCJA. The most impactful changes for the company from the TCJA are the deduction limitations for compensation paid to executive officers and the benefit from the foreign derived intangible income regime. See Note 10, Income Taxes of the Notes to Consolidated Financial Statements for further detail of income tax expense. Segment Analysis The following charts and tables summarize the annual revenue and operating results for our two complementary business segments.