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INCOME TAXES
 9 Months Ended
Sep. 30, 2021
INCOME TAXES  
INCOME TAXES

NOTE 15 — INCOME TAXES

The Company recognized $51,259 of tax expense on pretax income of $253,429, resulting in an effective income tax rate of 20.2% for the nine months ended September 30, 2021. The effective income tax rate was 22.9% for the nine months ended September 30, 2020.

The effective tax rate was lower for the nine months ended September 30, 2021, as compared with the same period in 2020, primarily due to favorable discrete tax adjustments in 2021, as well as higher tax expense associated with a valuation allowance recorded in 2020.

As of September 30, 2021, the Company had $17,733 of unrecognized tax benefits. If recognized, approximately $14,008 would be reflected as a component of income tax expense.

The Company files income tax returns in the U.S. and various state, local and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local or non-U.S. income tax examinations by tax authorities for years before 2017. The Company is currently subject to U.S., various state and non-U.S. income tax audits.

Unrecognized tax benefits are reviewed on an ongoing basis and are adjusted for changing facts and circumstances, including progress of tax audits and closing of statutes of limitations. Based on information currently available, management believes that additional audit activity could be completed and/or statutes of limitations may close relating to existing unrecognized tax benefits. It is reasonably possible there could be a reduction of $937 in previously unrecognized tax benefits by the end of the third quarter 2022.