Income Taxes (Notes)

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

The Company's ETR from continuing operations for the three and nine months ended September 30, 2021 was a 14.2% provision and a 13.1% provision, respectively. During the three and nine months ended September 30, 2021, the ETR from continuing operations was impacted by discrete items totaling $0.4 million of expense and $0.9 million of benefit, respectively. Absent the discrete items, the ETR from continuing operations for the three and nine months ended September 30, 2021 was a 13.0% provision and a 14.5% provision, respectively. The Company's ETR from continuing operations for the three and nine months ended September 30, 2020 was a 29.1% provision and a 26.5% provision, respectively. During the three and nine months ended September 30, 2020, the ETR from continuing operations was impacted by discrete items totaling $1.2 million of benefit, primarily related to a benefit resulting from an increase to the recognized deferred tax assets in the Company's U.S. and Malaysian subsidiaries. Absent the discrete items, the ETR from continuing operations for the three and nine months ended September 30, 2020 was a 44.3% provision and a 32.2% provision, respectively. The Company accrues taxes in various countries where it generates income and applies a valuation allowance in other jurisdictions (primarily the U.S.), which resulted in the provision for both the three and nine months ended September 30, 2021 and 2020.

The Company's ETR is favorably impacted by tax holidays granted to the Company in Malaysia. These tax holidays are subject to the Company's annual satisfaction of certain conditions, including investment and sales thresholds. If the Company fails to satisfy such conditions, the Company's current ETR may be significantly adversely impacted. The continuing operations benefit of the tax holidays in Malaysia for the three and nine months ended September 30, 2021 was approximately $3.9 million and $9.3 million, respectively, or $0.04 and $0.10 on a per share basis. The continuing operations benefit of these incentives for the three and nine months ended September 30, 2020 was approximately $2.7 million and $4.2 million, respectively, or $0.03 and $0.05 on a per share basis. The Company's existing significant tax holiday in Malaysia will expire on December 31, 2021. The Company is pursuing an extension for its current tax holiday and evaluating other strategies to mitigate the impact of the expiring tax holiday. If the Company is unable to extend the current tax holiday or negotiate acceptable new terms, the Company’s ETR may be significantly adversely impacted.