Income Tax Expense (Benefit)

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Income Tax Expense (Benefit)

13. INCOME TAX EXPENSE (BENEFIT)

The Company recorded an income tax expense of $3.9 million and $4.4 million for the three and nine months ended September 30, 2022, respectively, compared to an income tax expense of $3.0 million and $7.1 million for the three and nine months ended September 30, 2021, respectively. The effective tax rate for the three and nine months ended September 30, 2022, was 33.5% and 25.5%, respectively. The effective tax rate for the three and nine months ended September 30, 2021, was 74.6% and 28.8%, respectively. The tax rate for the nine months ended September 30, 2022, was largely impacted by taxable gains in local jurisdictions associated with foreign currency translation of U.S. dollar denominated receivables, primarily in the United Kingdom and Turkey. The increased tax was partially offset by the release of withholding tax of $0.6 million related to unrepatriated earnings of our Russian subsidiary amounting to $12.0 million, which are not expected to be distributed in the foreseeable future. The tax rate for the three months ended September 30, 2021, in contrast, was largely impacted by non-deductible items and the earnings mix of jurisdictions subject to tax for that period.