Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

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Income Taxes
 6 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes

8. Income Taxes

Income taxes were $25.1 million and $37.6 million for the three months ended June 30, 2023 and 2022, respectively, and $26.9 million and $62.8 million for the six months ended June 30, 2023 and 2022, respectively. The effective income tax rate was 29.5% and 30.3% for the three months ended June 30, 2023 and 2022, respectively, and 23.2% and 25.4% for the six months ended June 30, 2023 and 2022, respectively. The decrease in the effective tax rate for the three and six months ended June 30, 2023 as compared to the same period in 2022 was primarily due to an increase in benefits from discrete events, partially offset by changes in the geographic mix of the Company's income.

As of June 30, 2023, the total amount of unrecognized tax benefits, including related interest and penalties, was $67.8 million. If the total amount of unrecognized tax benefits was recognized, $45.4 million of unrecognized tax benefits, $15.8 million of interest, and $3.2 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 $10.5 million within the next twelve months. Of this possible decrease, $9.6 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.