Income Taxes

9 Months Ended

Sep. 30, 2020

Income Taxes [Abstract]

Income Taxes

Income TaxesOur effective tax rate for the nine months ended September 30, 2020 increased period-over-period to 28.5% from 26.0%. The non-deductibility in certain jurisdictions of a portion of the repositioning costs and net loss on dispositions recorded in the second quarter of 2020 had the effect of increasing our effective tax rate for the nine months 2020 from 26.6% to 28.5%. In addition, in the same period in 2019, income tax expense was reduced by $10.8 million, primarily from the net favorable settlements of uncertain tax positions in certain jurisdictions. After consideration of these items, our effective rate for the nine-month period 2020 would have approximated the rate for the same period in 2019.

At September 30, 2020, our unrecognized tax benefits were $182.1 million. Of this amount, approximately $173.3 million would affect our effective tax rate upon resolution of the uncertain tax positions. Due to the impact of the COVID-19 pandemic, we reassessed the realizability of our deferred tax assets and have determined that there has been no change in assessment as of September 30, 2020.

In response to the economic impact of the COVID-19 pandemic, the CARES Act, was signed into law on March 27, 2020. We have determined that the CARES Act did not have a material impact on our income tax expense or effective tax rate for the quarter or the nine months ended September 30, 2020 and will not have a material impact on our income tax expense or effective tax rate for the year ending December 31, 2020.