Income Taxes

3 Months Ended

Mar. 31, 2020



14.	Income Taxes

The Company’s effective tax rate was 31.7 percent and 26.4 percent for the three months ended March 31, 2020 and 2019, respectively. The increase in the Company’s tax rate was primarily due to the jurisdictional earnings mix and decrease in income before income taxes.

Undistributed earnings of certain foreign subsidiaries of the Company amounted to $78.1 million and $77.4 million at March 31, 2020 and December 31, 2019, respectively. These earnings and profits are considered to be indefinitely reinvested. Upon distribution of these earnings in the form of dividends or otherwise, the Company would be subject to withholding taxes payable to foreign countries, where applicable, but would generally have no further federal income tax liability.

During the first quarter of 2020, the Company concluded the appeals process with the Internal Revenue Service in connection with the 2010 through 2012 audits. The Company also finalized a transfer pricing examination with New Zealand Inland Revenue for years 2013 through 2017. These settlements resulted in a decrease in the Company’s unrecognized tax benefits of $5.4 million with no additional tax impact to the Company. No significant changes to the remaining unrecognized tax benefits are expected within the next 12 months.