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INCOME TAXES	9 Months Ended
Sep. 30, 2021
INCOME TAXES
INCOME TAXES	12. INCOME TAXES The income tax provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. There is potential for volatility of the effective tax rate due to several factors, including changes in the mix of the pre-tax income and the jurisdictions to which it relates, changes in tax laws, settlements with taxing authorities and foreign currency fluctuations. The effective income tax rate was 24.6% and 25.4% for the three months ended September 30, 2021 and 2020, respectively. The effective tax rate includes a discrete tax benefit of (2.9%) and (2.6%), respectively. For the three months ended September 30, 2021 the discrete tax benefit related primarily to the net amount recognized of Portuguese investment tax credits. For the three months ended September 30, 2020 the discrete tax benefit is primarily related to global intangible low-taxed income (GILTI) regulation changes. For the nine months ended September 30, 2021 and 2020, the effective income tax rate was (14.2%) and 27.6%, respectively. The effective tax rate includes a discrete tax benefit of (41.3%) and (0.3%), respectively. The discrete tax benefit for the nine months ended September 30, 2021 is primarily related to the recognition of net operating loss carryforwards resulting from tax legislation enacted in New Zealand during the period, which allows us to use the carryforwards in future periods. The discrete tax benefit for the nine months ended September 30, 2020 primarily related to GILTI regulation changes partially offset by share-based payment awards.

INCOME TAXES

9 Months Ended

Sep. 30, 2021

12. INCOME TAXES

The income tax provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. There is potential for volatility of the effective tax rate due to several factors, including changes in the mix of the pre-tax income and the jurisdictions to which it relates, changes in tax laws, settlements with taxing authorities and foreign currency fluctuations.

The effective income tax rate was 24.6% and 25.4% for the three months ended September 30, 2021 and 2020, respectively. The effective tax rate includes a discrete tax benefit of (2.9%) and (2.6%), respectively. For the three months ended September 30, 2021 the discrete tax benefit related primarily to the net amount recognized of Portuguese investment tax credits. For the three months ended September 30, 2020 the discrete tax benefit is primarily related to global intangible low-taxed income (GILTI) regulation changes. For the nine months ended September 30, 2021 and 2020, the effective income tax rate was (14.2%) and 27.6%, respectively. The effective tax rate includes a discrete tax benefit of (41.3%) and (0.3%), respectively. The discrete tax benefit for the nine months ended September 30, 2021 is primarily related to the recognition of net operating loss carryforwards resulting from tax legislation enacted in New Zealand during the period, which allows us to use the carryforwards in future periods. The discrete tax benefit for the nine months ended September 30, 2020 primarily related to GILTI regulation changes partially offset by share-based payment awards.

- 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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