Income Taxes

3 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes [Text Block]

8. Income Taxes

Our effective income tax rate for the three months ended March 31, 2020 was 34.4% compared with 19.9% for the three months ended March 31, 2019. Our effective income tax rate fluctuates based on, among other factors, changes in pretax income in countries with varying statutory tax rates, changes in valuation allowances, changes in foreign exchange gains/losses, the amount of exempt income, changes in unrecognized tax benefits associated with uncertain tax positions, and changes in tax laws.

On March 27, 2020, the U.S. enacted the Coronavirus Aid, Relief, and Economic Security Act, also known as the “CARES Act”. As a result of the CARES Act, we remeasured our U.S. deferred tax liabilities resulting in an increase to our effective tax rate for the three months ended March 31, 2020 compared to the three months ended March 31, 2019. This increase was partially offset by the increased relative impact of exempt income due to decreased pretax income.

We are continuing to analyze the impact of the CARES Act; however, we anticipate an overall favorable income tax impact on our Consolidated Financial Statements during the remainder of 2020.