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Income Tax Expense
6 Months Ended
Jun. 30, 2020
Income Tax Disclosure [Abstract]  
Income Tax Expense

 

14. INCOME TAX EXPENSE

The Company recorded an income tax benefit of $0.3 million and income tax expense of $4.8 million for the three months ended June 30, 2020 and 2019, respectively, and income tax benefit of $4.3 million and $22.8 million for the six months ended June 30, 2020 and 2019, respectively. The effective tax rate for the three and six months ended June 30, 2020 were 4.4% and 3.6% recorded on a loss from continuing operations before taxes of $5.9 million and $118.3 million, respectively. The income tax benefit for the three and six months ended June 30, 2020, was primarily impacted by the impairment of goodwill, intangible assets and other charges recorded during these periods, which were largely not deductible for tax purposes. We have refined our estimate of the tax impact associated with the $132.1 million for impairments and other charges, limiting the tax benefit to $5.5 million, and was a discrete item for the six months ended June 30, 2020.

The effective tax rate for the three months ended June 30, 2019 was 19.8% on income from continuing operations before tax of $24.3 million. The effective tax rate for the six months ended June 30, 2019 was (61.7%) on income from continuing operations before tax of $37.0 million. The income tax benefit recorded is the result of a corporate restructuring which resulted in a net deferred tax benefit of $58.5 million, which was reduced by tax expense of $26.7 million related to unremitted earnings of foreign subsidiaries that we no longer consider to be indefinitely reinvested, each of which was a discrete item to the reporting periods.  Income tax expense will continue to be impacted by changes in activity levels in jurisdictions with differing tax rates.