Income Taxes

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Note 12 – Income Taxes

In determining the quarterly provision for income taxes, management uses an estimated annual effective tax rate based on forecasted annual pre-tax income, permanent tax differences, statutory tax rates and tax planning opportunities in the various jurisdictions in which the Company operates. The effect of significant discrete items is separately recognized in the quarter(s) in which they occur. For the three month periods ended September 30, 2019 and 2018, the Company’s consolidated effective tax rates were 25% and 17%, respectively. For both the nine month periods ended September 30, 2019 and 2018, the Company’s consolidated effective tax rate was 24%. The Company’s effective tax rate for the nine month period ended September 30, 2019 included the favorable effects of reduced foreign earnings, the recognition of $2.3 million of excess tax benefits from the vesting of share-based awards, adjustments from the finalization of the Company’s 2018 tax returns and the effects of foreign tax rate changes. For the nine month period ended September 30, 2018, the Company’s effective tax rate included a net tax benefit of approximately $16 million related to the 2017 Tax Act, including from finalization of its tax return for the year ended December 31, 2017, certain tax accounting method changes and other adjustments to the initial remeasurement of its deferred tax balances as of December 31, 2017.