XML 39 R28.htm IDEA: XBRL DOCUMENT

Income Taxes (Tables)

9 Months Ended

Sep. 30, 2020

The Company's provision for income taxes in interim periods is computed by applying the estimated annual effective tax rates to income or loss before income taxes for the period. In addition, non-recurring or discrete items are recorded during the period(s) in which they occur.


	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Provision for income taxes	$	26.6		$	35.5		$	84.2		$	110.4
Effective tax rate	22.6		%	34.7		%	26.2		%	30.1		%

Income tax expense for the three and nine months ended September 30, 2020 was calculated using forecasted multi-jurisdictional annual effective tax rates to determine a blended annual effective tax rate. The effective tax rate differs from the U.S. federal statutory rate of 21% primarily due to the projected mix of earnings in international jurisdictions with relatively higher tax rates and unfavorable U.S. permanent differences.

The effective tax rate of 22.6% for the three months ended September 30, 2020 was lower than the rate for the three months ended September 30, 2019 primarily due to the projected decrease in the mix of earnings in international jurisdictions with relatively higher tax rates. Income tax expense also decreased due to discrete tax benefit in the current year compared to discrete tax expense in the prior year.

The effective tax rate of 26.2% for the nine months ended September 30, 2020 was lower than the rate for the nine months ended September 30, 2019. Income tax expense was lower due to the projected decrease in the mix of earnings in international jurisdictions with relatively higher tax rates. In addition, income tax expense decreased due to additional accruals recorded discretely for uncertain tax positions in the prior year related to the U.S. Tax Cuts and Jobs Act of 2017 ("U.S. Tax Reform").

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]


	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Provision for income taxes	$	26.6		$	35.5		$	84.2		$	110.4
Effective tax rate	22.6		%	34.7		%	26.2		%	30.1		%

- 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