Income Taxes

6 Months Ended

Jun. 30, 2021

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 June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Provision for income taxes	$	29.4		$	28.0		$	54.7		$	57.6
Effective tax rate	21.5		%	31.2		%	19.7		%	28.3		%

Income tax expense for the three and six months ended June 30, 2021 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 release of accruals for uncertain tax positions from the settlement of the 2017 and 2018 U.S. federal tax years and other foreign jurisdictions, and favorable U.S. permanent book-tax differences. These items were partially offset by the unfavorable impact of earnings in foreign jurisdictions with higher tax rates.

The effective tax rate of 21.5% for the three months ended June 30, 2021 was lower than the rate for the three months ended June 30, 2020 primarily due to the release of accruals for uncertain tax positions, discrete benefits on tax rate changes in foreign jurisdictions and a more favorable mix of earnings in lower tax rate jurisdictions, including the United States. Income taxes in the United States were favorably impacted by permanent book-tax differences, including the new elective Global Intangible Low Tax Income ("GILTI") high tax exemption rules.

The effective tax rate of 19.7% for the six months ended June 30, 2021 was lower than the rate for the six months ended June 30, 2020 primarily due to the release of accruals for uncertain tax positions, a more favorable mix of earnings in lower tax rate jurisdictions, including the United States. Income taxes in the United States were favorably impacted by permanent book-tax differences, including the tax impact from stock-based compensation awards and the new elective GILTI high tax exemption rules.

- 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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