XML 29 R19.htm IDEA: XBRL DOCUMENT v3.21.2
Income Taxes
 9 Months Ended
Sep. 30, 2021
Income Tax Disclosure [Abstract]  
Income Taxes

12)

Income Taxes

The Company’s effective tax rates for the three and nine months ended September 30, 2021 were 20.4% and 17.6%, respectively. The effective tax rates for the three and nine months ended September 30, 2021 and related income tax expense, were lower than the U.S. statutory tax rate mainly due to the U.S. deduction for foreign derived intangible income, windfall benefits from stock compensation, 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 withdrawal from the European Union.

 

The Company’s effective tax rates for the three and nine months ended September 30, 2020 were 15.7% and 17.0%, respectively. The effective tax rates for the three and nine months ended September 30, 2020, and related income tax

expense, were lower than the U.S. statutory tax rate mainly due to the geographic mix of income earned by the Company’s international subsidiaries being taxed at rates lower than the U.S. statutory tax rate, benefits of stock compensation, and the U.S. deduction for foreign derived intangible income offset by the U.S. tax effects of the U.S. global intangible low-taxed income inclusion and the write-off of deferred tax assets related to certain foreign net operating losses.  

 

As of September 30, 2021 and December 31, 2020, the total amount of gross unrecognized tax benefits, which excludes interest and penalties, was $47.3 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 September 30, 2021 and December 31, 2020, the Company had accrued interest on unrecognized tax benefits of approximately $0.9 and $0.7, respectively.

 

Over the next 12 months it is reasonably possible that the Company may recognize approximately $3.8 of previously net unrecognized tax benefits, excluding interest and penalties, related to various U.S. federal 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 carryforwards and state tax loss and credit carryforwards that are open to examination for tax years 2000 through the present.