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Income Taxes
3 Months Ended
Mar. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes


The company had an effective tax rate of 74.2% on earnings and 16.3% on losses before tax for the three months ended March 31, 2020 and March 31, 2019, respectively, compared to an expected expense for the three months ended March 31, 2020 and an expected benefit for the three months ended March 31, 2019 of 21.0% on the pre-tax earnings and loss for each period. The company's effective tax rate for each of the three months ended March 31, 2020 and March 31, 2019 were unfavorable as compared to the U.S. federal statutory rate expected expense and benefit, respectively, principally due to the negative impact of the company not being able to record tax benefits related to the significant losses in countries which had tax valuation allowances. The effective tax rate was increased for the three months ended March 31, 2020 and March 31, 2019 by certain taxes outside the United States, excluding countries with tax valuation allowances, that were at an effective rate higher than the U.S. statutory rate, except for the gain on the disposition of the Dynamic group which was not taxable locallyIn addition, the company had accrued withholding taxes on earnings of its Chinese subsidiary based on the expectation of not permanently reinvesting those earnings. The sale of this entity, without such distribution resulted in the reversal of this accrual in the amount of $988,000 for the three months ended March 31, 2020.