Income Taxes

3 Months Ended

Mar. 31, 2021

(14) Income Taxes

The Company’s income tax expense (benefit) for the periods presented was as follows:


	Three Months Ended March 31, 2021
	2021			2020
	(In thousands, excluding percentages)
Income tax expense (benefit)	$	2,951		$	(3,737)
Effective tax rate	33.4		%	(185.7)		%

The Company’s income tax expense for the three months ended March 31, 2021 totaled $3.0 million resulting in an effective tax rate of 33.4%, compared to a benefit of $3.7 million, and an effective tax rate of (185.7)%, for the same period of 2020.

The increase in tax expense for the three months ended March 31, 2021 was primarily attributable to the higher pre-tax profits recognized in the current period, without an offset from any non-recurring tax benefits, as was recognized in the same period of 2020. The benefit recognized for the three months ended March 31, 2020 was primarily attributable to a non-recurring benefit from the carryback of net operating losses to prior tax years at the higher 35% U.S. tax rate, compared to the current tax rate of 21%, as a result of the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was signed into law in the U.S. in March 2020.

The Company assesses the need for any deferred tax asset valuation allowances at the end of each reporting period. The determination of whether a valuation allowance for deferred tax assets is needed is subject to considerable judgment and requires an evaluation of all available positive and negative evidence. The Company’s assessment concluded that maintaining valuation allowances on deferred tax assets in Australia, Canada, Mexico, and Spain was appropriate, as the Company currently believes that it is more likely than not that the related deferred tax assets will not be realized.

The deferred tax expenses and benefits associated with the Company’s net unrealized gains and losses on derivative instruments and foreign currency translation adjustments have been recorded in the Accumulated other comprehensive loss, net line in the Company's Consolidated Balance Sheets.

The Company currently believes that the unremitted earnings of certain of its subsidiaries will be reinvested for an indefinite period of time. Accordingly, no deferred taxes have been provided for the differences between the Company’s book basis and underlying tax basis in these subsidiaries or on the foreign currency translation adjustment amounts.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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