Income Taxes

6 Months Ended

Jun. 30, 2020

10.	Income Taxes

The effective income tax rates for the three months ended June 30, 2020 and 2019, were 20.5% and 18.6%, respectively. For the six months ended June 30, 2020 and 2019, the effective income tax rates were 25.3% and 22.1%, respectively. The effective tax rates for the three and six months ended June 30, 2020 and 2019 were both impacted by changes in estimates associated with the finalization of prior year foreign tax items, audit settlements, a change in valuation allowances, and the mix of foreign earnings.

On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security Act (CARES Act). The CARES Act allows for the deferral of income and social security tax payments, a five-year carryback for net operating losses, changes to interest expense and business loss limitation rules, certain new tax credits, and certain new loans and grants to businesses. The Company has reviewed its income tax assumptions and projections in light of the CARES Act and has determined the CARES Act does not materially impact the Company’s income tax expense or projections. During the three months ended June 30, 2020, the Company deferred certain income and payroll tax payments of $6.1 million as permitted by the CARES Act.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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