Income Taxes

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income TaxesFor the three and six months ended June 30, 2021, income tax expense was $11.3 million and $37.2 million, respectively, representing an effective tax rate of 21% for both periods. The items resulting in variances from the federal statutory rate of

21% for the three months ended June 30, 2021 primarily consist of state and local income tax expense and tax expense for an increase in valuation allowances for foreign taxes and U.S. foreign tax, partially offset by a tax benefit from foreign operations. The items resulting in variances from the federal statutory rate of 21% for the six months ended June 30, 2021 primarily consist of a discrete tax benefit for excess tax benefits related to stock compensation, partially offset by state and local income tax expense.

For the three and six months ended June 30, 2020, income tax expense was $9.7 million and $43.3 million, respectively, representing an effective tax rate of 36% and 32%, respectively, as compared to the federal statutory rate of 21%. The effective tax rate differed from the federal statutory rate for both periods due primarily to tax expense from foreign operations, state and local income tax expense and tax expense resulting from an increase in valuation allowances for foreign taxes and U.S. foreign tax credits, partially offset by a discrete tax benefit relating to uncertain tax positions (including accrued interest) and a tax benefit related to a foreign-derived intangible income deduction. The discrete tax benefit relating to uncertain tax positions is primarily due to audit settlements and the filing of state income tax returns under voluntary disclosure agreements.

At June 30, 2021, the Company had foreign tax credit carry forwards of approximately $33.5 million, expiring on various dates from 2022 through 2031. These carryforwards have been reduced by a valuation allowance of $33.5 million as it is more likely than not that these carry forwards will not be realized. For the six months ended June 30, 2021, $0.5 million relating to amortization of tax deductible second component goodwill was realized as a reduction in tax liability (as determined on a 'with-and-without' approach).