INCOME TAXES

9 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES The Company records a tax provision or benefit on an interim basis using an estimated annual effective tax rate. This rate is applied to the current period ordinary income or loss to determine the income tax provision or benefit allocated to the interim period. Losses from jurisdictions for which no benefit can be recognized and the income tax effects of unusual or infrequent items are

excluded from the estimated annual effective tax rate and are recognized in the impacted interim period. The estimated annual effective tax rate may be significantly impacted by projected earnings mix by tax jurisdiction. Adjustments to the estimated annual effective income tax rate are recognized in the period when such estimates are revised.

The Company’s effective tax rate for the three and nine months ended September 30, 2020 was 20.0% and 27.0%, compared to 32.8% and 35.1%, respectively, for the comparable periods in 2019.

As of September 30, 2020 and December 31, 2019, the Company had recorded $5.2 million and $6.4 million, respectively, of liabilities for unrecognized tax benefits and $1.9 million and $1.7 million, respectively, of interest. The Company released $1.1 million of uncertain tax positions in the three months ended September 30, 2020.

The Internal Revenue Service ("IRS") completed its examination of the Company’s tax years 2014-2016 and the Joint Committee on Taxation completed its review and took no exception. No material adjustments were made to the previously filed returns as a result of this process. In the third quarter of 2020, the Company received a refund of $7.7 million associated with the amended returns for these tax years.