Income Taxes |
9 Months Ended | ||
|---|---|---|---|
Sep. 30, 2021 | |||
| Income Tax Disclosure [Abstract] | |||
| Income Taxes |
The tax provisions for the three and nine months ended September 30, 2021 and 2020 were computed using the estimated effective tax rates applicable to each of the domestic and international taxable jurisdictions for the full year. The Company’s tax rate is subject to management’s quarterly review and revision, as necessary. The Company’s provision for income tax expense and effective income tax rate are significantly impacted by the mix of the Company’s domestic and foreign earnings (loss) before income taxes. In the foreign jurisdictions in which the Company has operations, the applicable statutory rates range from 0.0% to 34.0%, which is on average significantly lower than the U.S. federal and state combined statutory rate of approximately 24.5%. The Company’s effective tax rate was 15.6% and 15.4% for the three months ended September 30, 2021 and 2020 with both rates below the Company’s average annual rates. The effective tax rate for the third quarter of 2021 was lower as a result of revisions to the estimated provision as compared to the 2020 U.S. federal income tax return finalized in the current quarter. The reduced rate for the third quarter of 2020 was due to the mixture of the Company’s domestic and foreign earnings (loss), partially offset by a non-recurring, non-deductible charge. The Company’s effective tax rate was 19.0% and 21.0% for the nine months ended September 30, 2021 and 2020. For the nine months ended September 30, 2021, the year-over-year decrease in the effective tax rate was the result of changes in the mixture of the Company’s domestic and foreign earnings (loss) and the non-recurring, non-deductible charge in the prior year. |