INCOME TAXES

6 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The Company recognized $27,037 of tax expense on pretax income of $109,605, resulting in an effective income tax rate of 24.7% for the six months ended June 30, 2020.  The effective income tax rate was 20.1% for the six months ended June 30, 2019.

The increase in the effective tax rate for the six months ended June 30, 2020, as compared with the same period in 2019, was primarily due to recording the tax expense associated with a valuation allowance in 2020, smaller tax benefits related to the vesting of stock based compensation in 2020 and income tax benefits for the settlement of tax items recorded in 2019.

As of June 30, 2020, the Company had $20,235 of unrecognized tax benefits.  If recognized, approximately $17,259 would be reflected as a component of income tax expense.

The Company files income tax returns in the U.S. and various state, local and foreign jurisdictions.  With few exceptions, the Company is no longer subject to U.S. federal, state and local or non-U.S. income tax examinations by tax authorities for years before 2015.  The Company is currently subject to U.S., various state and non-U.S. income tax audits. 

Unrecognized tax benefits are reviewed on an ongoing basis and are adjusted for changing facts and circumstances, including progress of tax audits and closing of statutes of limitations.  Based on information currently available, management believes that additional audit activity could be completed and/or statutes of limitations may close relating to existing unrecognized tax benefits.  It is reasonably possible there could be a reduction of $2,165 in previously unrecognized tax benefits by the end of the second quarter 2021.