Income taxes

9 Months Ended

Sep. 30, 2021


	Three Months Ended September 30,					Nine Months Ended September 30,
	2021			2020		2021			2020
Continuing operations
Provision for income taxes (in millions)	$	22.9		58.9		$	59.2		3.5
Effective tax rate	49.9		%	161.4	%	47.5		%	(3,500.0	%)

2021 Compared to U.S. Statutory Rate

The effective income tax rate on continuing operations in the first nine months of 2021 was greater than the 21% U.S. statutory rate primarily due to the geographical mix of earnings, the seasonality of book losses for which no tax benefit can be recorded, nondeductible expenses in Mexico, taxes on cross border payments and U.S. taxable income limitations, and the characterization of a French business tax as an income tax.

2020 Compared to U.S. Statutory Rate

The effective income tax rate on continuing operations in the first nine months of 2020 was negative and not meaningful primarily due to the level of pre-tax loss. The items that cause the tax and corresponding rate to be negative compared to tax at the 21% U.S. statutory tax rate include the geographical mix of earnings, the seasonality of book losses for which no tax benefit can be recorded, nondeductible expenses in Mexico, taxes on cross border payments and U.S. taxable income limitations, and the characterization of a French business tax as an income tax, partially offset by the tax benefits related to the distribution of share-based payments.

- 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.

+ References + Details