Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v3.22.2
Income Taxes
 6 Months Ended
Jun. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes

8. Income Taxes

Income taxes were $37.6 million and $32.3 million for the three months ended June 30, 2022 and 2021, respectively, and $62.8 million and $69.9 million for the six months ended June 30, 2022 and 2021, respectively. The effective income tax rate was 30.3% and 18.3% for the three months ended June 30, 2022 and 2021, respectively, and 25.4% and 19.4% for the six months ended June 30, 2022 and 2021, respectively. The increase in the effective tax rate for the three and six months ended June 30, 2022 as compared to the same period in 2021 was primarily due to changes in the geographic mix of the Company's income and an increase in tax expense from discrete events.

As of June 30, 2022, the total amount of unrecognized tax benefits, including related interest and penalties, was $76.5 million. If the total amount of unrecognized tax benefits was recognized, $50.4 million of unrecognized tax benefits, $16.1 million of interest, and $3.6 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 $10.0 million within the next twelve months. Of this possible decrease, $9.1 million would be due to the expiration of statute of limitations in various jurisdictions. The remaining possible decrease of $0.9 million would be due to the settlement of audits or resolution of administrative or judicial proceedings.