\$3.5 million associated with executive reorganizations, respectively, which resulted in the acceleration of previously granted equity awards and other expenses.

# mPower Framework Agreement

On March 2, 2016, as a result of entering into a framework agreement with Bechtel Power Corporation ("Bechtel"), BWXT Modular Reactors, LLC and BDC NexGen Power, LLC, our partner in GmP, for the potential restructuring and restart of our mPower small modular reactor program (the "Framework Agreement"), we deconsolidated GmP from our financial statements as of the date of the Framework Agreement. We recorded a gain of approximately \$13.6 million during the year ended December 31, 2016 related to the deconsolidation of GmP as a component of Other – net on our consolidated statement of income. In the year ended December 31, 2016, we also recognized a \$30.0 million loss contingency as a result of the Framework Agreement, which was ultimately paid to Bechtel in the first quarter of 2017 following the receipt of Bechtel's notice that the mPower program would not be restarted.

# Other Income Statement Items

During the year ended December 31, 2018, other income (expense) decreased approximately \$28.4 million to a loss of \$24.8 million compared to a gain of \$3.6 million for the corresponding period of 2017. We experienced an increase in interest expense of \$12.9 million associated with higher levels of long term debt when compared to the prior year, which includes \$2.4 million of expense related to the recognition of prior deferred debt issuance costs associated with the Former Credit Facility. These items were partially offset by \$4.7 million of gains related to derivative instruments not designated as hedges. Other income and expense includes mark to market adjustments due to our immediate recognition of net actuarial gains (losses) for our pension and postretirement benefit plans, which totaled \$(32.6) million for the year ended December 31, 2018 compared to \$(11.1) million in the corresponding period of 2017.

During the year ended December 31, 2017, other income (expense) decreased approximately \$19.2 million to a gain of \$3.6 million compared to a gain of \$22.8 million for the corresponding period of 2016 due primarily to changes in the mark to market adjustments noted above. In addition, during the year ended December 31, 2016, we recorded a gain of \$13.6 million related to the deconsolidation of GmP and we were also released from substantially all outstanding performance guarantees for various projects executed by our former Power Generation business prior to the spin-off, which resulted in a gain of \$9.3 million. Other income and expense includes mark to market adjustments due to our immediate recognition of net actuarial gains (losses) for our pension and postretirement benefit plans, which totaled \$(11.1) million for the year ended December 31, 2017 compared to \$(21.3) million in the corresponding period of 2016.

# Provision for Income Taxes

Year Ended December 31,
2018	2017	2016
(In thousands)
Income before Provision for Income Taxes	$ 280,145	$ 295,780	$ 257,268
Provision for Income Taxes	$ 52,840	$ 147,415	$ 73,656
Effective Tax Rate	18.9%	49.8%	28.6%

On December 22, 2017, H.R. 1, the Tax Cuts and Jobs Act (the "Act") was enacted, making significant changes to existing U.S. tax laws that impact BWXT, including, but not limited to, a reduction to the U.S. corporate income tax rate from 35% to 21% for tax years beginning after December 31, 2017, the taxation of global intangible low-taxed income ("GILTI") and additional deduction limitations related to executive compensation. We recognized the income tax effects of the Act within our consolidated financial statements in accordance with FASB Topic Income Taxes. Our Canadian operations continue to be subject to tax at a local statutory rate of approximately 25%.

For the year ended December 31, 2018, our provision for income taxes decreased \$94.6 million to \$52.8 million, while income before provision for income taxes decreased \$15.6 million to \$280.1 million. Our effective tax rate was approximately 18.9% for 2018, as compared to 49.8% for 2017. Our effective tax rate for 2018 was lower than the 2018 U.S. corporate income tax rate of 21% primarily due to remeasurement adjustments to our deferred tax assets as a result of accelerating additional contributions made in August 2018 to certain of our domestic pension plans for inclusion in our 2017 U.S. tax return.

For the year ended December 31, 2017, our provision for income taxes increased \$73.8 million to \$147.4 million, while income before provision for income taxes increased \$38.5 million to \$295.8 million. Our effective tax rate was approximately