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Income Taxes
9 Months Ended
Sep. 30, 2020
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
For the quarter ended September 30, 2020, in accordance with applicable accounting guidance, we modified our interim period income tax provision methodology. The volatility in jurisdictional income impacts our ability to effectively determine an annual effective tax rate. Accounting guidance provides an alternate approach under these circumstances, whereby the actual effective tax rate for the interim period is used. We applied this approach as it is a better representation of the tax expense allocable to the third quarter results.

The effective tax rates for the quarters ended September 30, 2020 and 2019 were 25.4% and 8.9%, respectively. The effective tax rate for the three months ended September 30, 2020 is primarily the result of lower pre-tax income overall, a geographical mix of lower pre-tax income in the U.S. combined with higher pre-tax income in higher tax foreign jurisdictions as well as the recognition of a deferred tax liability in the amount of $4.5 million associated with the Air Springs business classification as held for sale at September 30, 2020, and a $4.9 million tax benefit associated with the final regulations issued during the third quarter of 2020 under the Tax Cuts and Jobs Act.

The effective tax rates for the nine months ended September 30, 2020 and 2019 were (17.9)% and 40.0%, respectively. The effective tax rate for the nine months ended September 30, 2020 is primarily the result of lower pre-tax income overall, a geographical mix of lower pre-tax income in the U.S. combined with the minimum tax on certain non-U.S. earnings, current year increase of valuation allowance against certain net operating losses, and higher tax rates in most foreign jurisdictions. The effective tax rate for the nine months ended September 30, 2019 reflects the minimum tax on certain non-U.S. earnings, higher tax rates in most foreign jurisdictions and adjustments to state net operating losses.
In June 2017, the IRS began an examination of our 2014 U.S. federal income tax return. Although this examination is part of a routine and recurring cycle, we cannot predict the final outcome or expected conclusion date of the audit. Various foreign and state tax returns are also currently under examination and some of these exams may conclude within the next twelve months. The final outcomes of these audits are not yet determinable; however, management believes that any assessments that may arise will not have a material effect on our financial results.