|9 Months Ended|
Sep. 30, 2021
|Income Tax Disclosure [Abstract]|
|INCOME TAXES||INCOME TAXES
The Company's quarterly income tax provision is measured using an estimate of its consolidated annual effective tax rate, adjusted for discrete items, within the periods presented. The comparison of the Company's income tax provision between periods can be significantly impacted by the level and mix of earnings and losses by tax jurisdiction and discrete items.
For the three months ended September 30, 2021 and 2020, the Company recognized income tax expense of $17.3 million and an income tax benefit of $47.3 million, respectively. For the nine months ended September 30, 2021 and 2020, the Company recognized income tax expense of $16.5 million and an income tax benefit of $37.4 million, respectively.
Income tax expense for the three and nine months ended September 30, 2021 includes a benefit of $3.8 million and $55.2 million, respectively, associated with the release of valuation allowances, the impact of higher pre-tax income and country mix of earnings. The benefit was associated with the release of valuation allowances previously recorded against certain U.S. tax attribute carryforwards, primarily consisting of net operating loss carryforwards in certain states and interest carryforwards. The valuation allowances are being released as the Company expects improved profitability in the U.S. and a shift to a three-year cumulative income position. These expectations are based on actual and forecasted results.
The income tax benefit for the three and nine months ended September 30, 2020 includes a $42 million benefit from new regulations related to the treatment of income that is subject to a high rate of foreign tax under the U.S. global intangible low-taxed income ("GILTI") and subpart F income regimes, as well as under Internal Revenue Code section 163(j) and the related interest expense limitations.
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.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef