| Item 2.02 | Results of Operations and Financial Condition |
The second paragraph of the disclosure under Item 7.01 – Regulation FD Disclosure is incorporated herein by reference.
| Item 7.01 | Regulation FD Disclosure |
On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act significantly revises the U.S. corporate income tax by, among other things, lowering corporate income tax rates, implementing a territorial tax system and imposing a repatriation tax on deemed earnings of foreign subsidiaries.
Based on our preliminary analysis and currently available information, we estimate that the enactment of the Tax Act will result in anon-recurring income tax expense in the range of $11 million to $14 million for the quarter ended December 31, 2017. Such amount relates to the repatriation tax and there-measurement of U.S. deferred tax assets, among other items.
We also estimate that the Tax Act will impact our effective tax rate in 2018 and beyond. We currently anticipate that our effective tax rate will be between 23.0% and 25.0% for 2018, inclusive of excess tax benefits from share-based compensation.
This estimated effective tax rate for 2018 is a forward-looking statement. Our actual effective tax rate for 2018 and the other impacts of the Tax Act discussed in this Current Report on Form8-K may differ from the provided estimates, possibly materially, due to, among other things, changes in interpretations and assumptions made by us, additional guidance that may be issued and actions taken by us as a result of the Tax Act. The effects of the Tax Act provisions are still being evaluated by management, and this Current Report on Form8-K does not purport to disclose all effects of the Tax Act which could have material positive or negative impacts on our current or future tax position. We anticipate providing additional information, including the impact to our earnings per share, in our fourth quarter earnings call scheduled for January 31, 2018.
The information included in this Current Report on Form8-K that is furnished pursuant to Item 2.02 and Item 7.01 shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. In addition, the information included in this Current Report on Form8-K that is furnished pursuant to Item 2.02 and Item 7.01 shall not be incorporated by reference into any filing of the MarketAxess Holdings Inc., whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference into such filing.
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