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Income Taxes
9 Months Ended
Sep. 30, 2020
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The U.S. federal statutory tax rate was 21% for each of the three and nine months ended September 30, 2020 and 2019. The Company’s effective tax rate for the three and nine months ended September 30, 2020 was 27.4% and 27.7%, respectively, of pretax income compared to the effective tax rate for the three and nine months ended September 30, 2019 of 26.4% and 27.2%, respectively.
The difference between the U.S. federal statutory tax rate and the Company’s effective tax rate for the three and nine months ended September 30, 2020 was primarily due to state income taxes and foreign earnings and the associated impact of the global intangible low tax income (“GILTI”) and other permanent difference items.
The difference between the U.S. federal statutory tax rate and the Company’s effective tax rate for the three and nine months ended September 30, 2019, was primarily due to state income taxes offset by the impact of the Company’s noncontrolling interest.
The Company had unrecognized tax benefits of approximately $0.4 million and $0.2 million as of September 30, 2020 and December 31, 2019, which were included in other liabilities in the accompanying consolidated balance sheets.
The Company’s policy is to recognize interest and penalties related to income tax liabilities as a component of income tax expense in the consolidated statements of operations. The amount of interest and penalties charged to income tax expense related to unrecognized tax benefits was not significant for the three and nine months ended September 30, 2020 and 2019.
The Company is subject to taxation in various jurisdictions. The Company’s 2017 through 2019 tax returns are subject to examination by U.S. federal authorities. The Company’s tax returns are subject to examination by various state authorities for the years 2016 through 2019.