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Income taxes	6 Months Ended
Jun. 30, 2021
Income taxes
Income taxes	9. Income taxes At the end of each interim period, the Company estimates the effective tax rate expected to be applicable for the full fiscal year. The estimate reflects, among other items, management’s best estimate of operating results. It does not include the estimated impact of foreign exchange rates or unusual and/or infrequent items, which may cause significant variations in the customary relationship between income tax expense and income before income taxes. For the three months ended June 30, 2021, income tax expense was $21,065,000 compared to an income tax expense of $27,656,000 for the same period in 2020. The effective tax rate was 26% in the second quarter of 2021, compared to 34% in the second quarter of 2020. The effective tax rate decreased in the three months ended June 30, 2021 compared to the three months ended June 30, 2020 primarily due a decrease in the estimate of non-deductible expenses. Partially offsetting this decrease was a higher estimate of income taxed in jurisdictions with higher tax rates. On April 8, 2020 the United States Department of Treasury and the Internal Revenue Service (“IRS”) clarified income tax benefits related to hybrid financing arrangements would not be deductible (“Hybrid Interest”). The lower estimate of non-deductible expenses is primarily due to the net income tax benefits of approximately $6,228,000 in the twelve months ended December 31, 2019 and $1,072,000 in the three months ended March 31, 2020 which were no longer deductible and accordingly were reversed in the three months ended June 30, 2020. For the six months ended June 30, 2021, income tax expense was $29,484,000, compared to an income tax expense of $33,304,000 for the same period in 2020. The effective tax rate was 25% for the six months ended June 30, 2021, compared to 30% for the six months ended June 30, 2020. The effective tax rate decreased in the six months ended June 30, 2021 compared to the six months ended June 30, 2020 primarily due to the reasons described above. In addition, there was a higher tax deduction for share unit expenses in excess of compensation expense.

Income taxes

6 Months Ended

Jun. 30, 2021

9. Income taxes

At the end of each interim period, the Company estimates the effective tax rate expected to be applicable for the full fiscal year. The estimate reflects, among other items, management’s best estimate of operating results. It does not include the estimated impact of foreign exchange rates or unusual and/or infrequent items, which may cause significant variations in the customary relationship between income tax expense and income before income taxes.

For the three months ended June 30, 2021, income tax expense was $21,065,000 compared to an income tax expense of $27,656,000 for the same period in 2020. The effective tax rate was 26% in the second quarter of 2021, compared to 34% in the second quarter of 2020.

The effective tax rate decreased in the three months ended June 30, 2021 compared to the three months ended June 30, 2020 primarily due a decrease in the estimate of non-deductible expenses. Partially offsetting this decrease was a higher estimate of income taxed in jurisdictions with higher tax rates.

On April 8, 2020 the United States Department of Treasury and the Internal Revenue Service (“IRS”) clarified income tax benefits related to hybrid financing arrangements would not be deductible (“Hybrid Interest”). The lower estimate of non-deductible expenses is primarily due to the net income tax benefits of approximately $6,228,000 in the twelve months ended December 31, 2019 and $1,072,000 in the three months ended March 31, 2020 which were no longer deductible and accordingly were reversed in the three months ended June 30, 2020.

For the six months ended June 30, 2021, income tax expense was $29,484,000, compared to an income tax expense of $33,304,000 for the same period in 2020. The effective tax rate was 25% for the six months ended June 30, 2021, compared to 30% for the six months ended June 30, 2020.

The effective tax rate decreased in the six months ended June 30, 2021 compared to the six months ended June 30, 2020 primarily due to the reasons described above. In addition, there was a higher tax deduction for share unit expenses in excess of compensation expense.

- 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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