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Income Taxes
 3 Months Ended
Mar. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes

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Income Taxes

The Company’s effective tax rates for the three months ended March 31, 2021 and 2020 were 17.5% and 15.0%, respectively. The effective tax rate and related income tax expense for the three months ended March 31, 2021 was lower than the U.S. statutory tax rate due to the U.S. deduction for foreign derived intangible income and the geographic mix of income earned by the Company’s international subsidiaries being taxed at rates lower than the U.S. statutory tax rate, offset by the U.S. global intangible low-taxed income inclusion and additional withholding taxes on inter-company distributions due to the United Kingdom’s departure from the European Union.

 

The Company’s effective tax rate and related income tax expense for the three months ended March 31, 2020, was lower than the U.S. statutory tax rate due to the U.S. deduction for foreign derived intangible income, the federal tax credit for research activities and the geographic mix of income earned by the Company’s international subsidiaries being taxed at rates lower than the U.S. statutory tax rate, offset by the U.S. global intangible low-taxed income inclusion.

 

As of March 31, 2021 and December 31, 2020, the total amount of gross unrecognized tax benefits, which excludes interest and penalties, was $46.5 and $47.0, respectively. The Company accrues interest expense, and if applicable, penalties, for any uncertain tax positions. Interest and penalties are classified as a component of income tax expense. As of March 31, 2021 and December 31, 2020, the Company had accrued interest on unrecognized tax benefits of approximately $0.7 and $0.7, respectively.

 

Over the next 12 months it is reasonably possible that the Company may recognize approximately $4.0 of previously net unrecognized tax benefits, excluding interest and penalties, related to various U.S. state and foreign tax positions, primarily as a result of the expiration of certain statutes of limitations.

 

The Company and its subsidiaries are subject to examination by U.S. federal, state and foreign tax authorities. The U.S. federal statute of limitations remains open for tax years 2017 through the present. The statute of limitations for the Company’s tax filings in other jurisdictions varies between fiscal years 2015 through present. The Company has certain federal credit carry-forwards and state tax loss and credit carry-forwards that are open to examination for tax years 2000 through the present.