38. In its 2018 annual report to shareholders, Black Inc. disclosed the following information about income taxes. A reconciliation of income taxes computed at the United States federal statutory income tax rate (35%) to the provision (benefit) for income taxes reflected in the Consolidated Statement of Operations for the years ended December 31, 2018, 2017, and 2016 is as follows ($ in millions):

	2018				2017				2016
Provision (benefit) for income taxes at United States federal statutory rate of 35%	$	5.2			$	(4.9	)		$	(11.3	)
State and local income taxes, net of federal income tax benefit		(4.1	)			(4.3	)			(3.9	)
Taxes on foreign income which differ from the United States statutory rate		(2.5	)			0.6				(0.7	)
Losses with no tax benefit		2.8				4.2				6.2
Benefit of foreign sales corporation		--				--				(0.5	)
Other		0.5				(3.2	)			--
	$	1.9			$	(7.6	)		$	(10.2	)

The significant components of the net deferred tax assets at December 31, 2018 and 2017 were as follows ($ in millions):

	2018				2017
Deferred Tax Assets:
Net operating loss carryforwards	$	141.6				139.0
Sales incentive discounts.		30.6				22.8
Inventory valuation reserves		15.0				8.3
Postretirement benefits		7.8				8.2
Other		64.2				74.1
Valuation allowance		(52.7	)			(71.8	)
Total deferred tax assets	$	206.5			$	180.6

	2018			2017
Deferred Tax Liabilities:
Tax over book depreciation		23.5			24.2
Tax over book amortization of patent		18.2			17.9
Other		19.1			16.3
Total deferred tax liabilities		60.8			58.4
Net deferred tax assets	$	145.7		$	122.2

Estimate the effective tax rate for Black Inc. in 2018. Why is it different from the 35% federal statutory rate? (Enter your answer rounded to 2 decimal places.)

Effective tax rate ______ %