|9 Months Ended|
Sep. 30, 2020
|Income Tax Disclosure [Abstract]|
|Income Taxes||Income Taxes
Income tax expense during interim periods is based on our estimated annual effective income tax rate plus any discrete items that are recorded in the period in which they occur. Our tax rate is affected by discrete items that may occur in any given year, but may not be consistent from year to year.
Our effective tax rate was 23.9% and (38.4)% for the three and nine months ended September 30, 2020, respectively, and 22.1% and 23.2% for the three and nine months ended September 30, 2019, respectively. The difference in the effective tax rate for the nine months ended September 30, 2020 compared to the same period of prior year primarily results from the following: 1) approximately $16.4 million of our goodwill impairment loss that is non-deductible for income tax purposes, and 2) a full valuation allowance established to offset the capital loss benefit in connection with our sale of Prime Turbines due to a lack of anticipated capital gain income in the carryforward period.On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security ("CARES") Act was signed into law. The CARES Act includes certain income tax provisions relevant to businesses. For the three and nine months ended September 30, 2020, the CARES Act did not have a material impact on our tax provisions.
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