XML 33 R16.htm IDEA: XBRL DOCUMENT

Income Taxes	6 Months Ended
Jun. 30, 2021
Income Taxes [Abstract]
Income Taxes	Note 10 – Income Taxes The U.S. Coronavirus Aid, Relief, and Economic Security Act (“The CARES Act”) was enacted on March 27, 2020 to provide, among other things, tax relief to companies impacted by the COVID-19 pandemic. The CARES Act includes, among other items, provisions for net operating loss carryback, modifications to the business interest expense deduction, a technical correction to tax depreciation methods for qualified improvement property, and alternative minimum tax credit refunds. During the quarter ended March 31, 2020, we recorded a tax benefit arising from the carryback of the net operating loss generated in the taxable year ended December 31, 2019. The interim provision for income taxes is different from the amount determined by applying the U.S. federal statutory rate to consolidated income or loss before taxes. The differences are attributable to foreign tax rate differential, unrecognized tax benefits, and foreign tax credit. Our effective tax rate was 22.9% and 13.7% for the six months ended June 30, 2021, and 2020, respectively. During the second quarter of 2021, we recorded an income tax benefit of approximately $5.5 million due to the recognition of previously unrecognized tax benefits, which reduced the effective tax rate by 9.7%. The forecasted effective tax rate is updated each quarter as new information becomes available.

Income Taxes

6 Months Ended

Jun. 30, 2021

Note 10 – Income Taxes

The U.S. Coronavirus Aid, Relief, and Economic Security Act (“The CARES Act”) was enacted on March 27, 2020 to provide, among other things, tax relief to companies impacted by the COVID-19 pandemic. The CARES Act includes, among other items, provisions for net operating loss carryback, modifications to the business interest expense deduction, a technical correction to tax depreciation methods for qualified improvement property, and alternative minimum tax credit refunds. During the quarter ended March 31, 2020, we recorded a tax benefit arising from the carryback of the net operating loss generated in the taxable year ended December 31, 2019.

The interim provision for income taxes is different from the amount determined by applying the U.S. federal statutory rate to consolidated income or loss before taxes. The differences are attributable to foreign tax rate differential, unrecognized tax benefits, and foreign tax credit. Our effective tax rate was 22.9% and 13.7% for the six months ended June 30, 2021, and 2020, respectively. During the second quarter of 2021, we recorded an income tax benefit of approximately $5.5 million due to the recognition of previously unrecognized tax benefits, which reduced the effective tax rate by 9.7%. The forecasted effective tax rate is updated each quarter as new information becomes available.

- 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.

+ References + Details