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Income Taxes
 9 Months Ended
Sep. 30, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The following table presents components of income tax expense for the three and nine months ended September 30, 2021 and 2020:
Three months ended September 30,Nine months ended
September 30,
(in thousands, except percentages)
2021202020212020
Income tax based on income from continuing operations (1)$13,150 $12,666 $37,733 $36,237 
Provision for change in estimated tax rate397 (1,196)179 (1,687)
Income tax before discrete items13,547 11,470 37,912 34,550 
Discrete tax expense:
Exercise of U.S. stock options(4)(7)(160)(7)
Adjustments to prior period tax liabilities(674)(1,750)(2,095)(983)
Revaluation of deferred tax assets due to tax rate change— — 352 — 
Provision for/resolution of tax audits and contingencies, net— (46)278 (1,779)
Write-off of net operating losses related to tax audit— — — 1,830 
Tax effect of non-deductible foreign exchange loss on intercompany loan— 3 — 3,658 
Creation of valuation allowance— 8 — 230 
Other20 8 88 5 
Total income tax expense$12,889 $9,686 $36,375 $37,504 
(1) Calculated at estimated tax rates of 30.0% and 32.2%, respectively
Income tax expense for the quarter was computed in accordance with ASC 740-270, Income Taxes – Interim Reporting. Under this method, loss jurisdictions, which cannot recognize a tax benefit with regard to their generated losses, are excluded from the annual effective tax rate ("AETR") calculation and their taxes will be recorded discretely in each quarter.
In the third quarter of 2021, the Company recorded a net tax benefit of $0.7 million related to U.S. adjustments of prior period liabilities. In the first quarter of 2021, the Company recorded a net tax benefit of $1.4 million related to a U.S. adjustment of prior period liabilities and, additionally, the Company recorded an expense of $0.3 million related to the establishment of a foreign uncertain tax position.
In the third quarter of 2020, the Company recorded a net tax benefit of $1.8 million related to U.S. adjustments of prior period liabilities. In the second quarter of 2020, the Company recorded a net tax benefit of $1.5 million as a result of a U.S. state tax audit settlement; the Company also recorded a net deferred tax expense of $1.0 million due to an adjustment of net operating losses related to settled audits. In the first quarter of 2020, the Company recorded a $1.8 million out-of-period charge related to developments in ongoing tax audits, which resulted in a corresponding decrease in deferred tax assets.