Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

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Income Taxes
6 Months Ended
Jun. 30, 2021
Income Tax Disclosure [Abstract]  
Income Taxes

8. Income Taxes

Income taxes were $32.3 million and $45.8 million for the three months ended June 30, 2021 and 2020, respectively, and $69.9 million and $70.8 million for the six months ended June 30, 2021 and 2020, respectively. The effective income tax rate was 18.3% and 28.5% for the three months ended June 30, 2021 and 2020, respectively, and 19.4% and 30.6% for the six months ended June 30, 2021 and 2020, respectively. The decrease in the effective tax rate for the three months ended June 30, 2021 as compared to the same period in 2020 was primarily due to changes in the geographic mix of the Company’s income and an increase in net benefits from discrete events. The decrease in the effective tax rate for the six months ended June 30, 2021 as compared to the same period in 2020 was primarily due to changes in the geographic mix of the Company’s income and a decrease in expense from discrete events.

As of June 30, 2021, the total amount of unrecognized tax benefits, including related interest and penalties, was $69.0 million. If the total amount of unrecognized tax benefits was recognized, $45.3 million of unrecognized tax benefits, $13.0 million of interest, and $2.2 million of penalties would impact the effective tax rate.

The Company believes that it is reasonably possible that the amount of unrecognized tax benefits could decrease by up to approximately $9.2 million within the next twelve months. Of this possible decrease, $0.4 million would be due to the settlement of audits or resolution of administrative or judicial proceedings. The remaining possible decrease of $8.8 million would be due to the expiration of statute of limitations in various jurisdictions.