Income Taxes

3 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

12. Income Taxes

For the three months ended March 31, 2024, the Company recorded an income tax provision of $244, which includes a discrete income tax provision of $412. The calculation of the overall income tax provision for the three months ended March 31, 2024 primarily consists of a discrete income tax expense for the accrual of interest related to unrecognized tax benefits. For the three months ended March 31, 2023 , the Company recorded an income tax provision of $13, which includes a discrete income tax expense of $16. The calculation of the overall income tax provision for the three months ended March 31, 2023 primarily consist of a discrete income tax expense for the accrual of interest related to unrecognized tax benefits.

The effective tax rate for the three months ended March 31, 2024 was an income tax provision of 9.1% on pretax income of $2,675 compared to an income tax provision of 100% on a pretax loss of $13 in the comparable prior period. The effective tax rate for the three months ended March 31, 2024 differs from the U.S. statutory rate of 21% primarily due to income taxed in domestic and foreign jurisdictions at varying tax rates, permanent differences and foreign tax credits, a change to our deferred tax liability related to an investment in a subsidiary, a partial valuation allowance in the U.S. and in Italy as well as a valuation allowance in certain foreign jurisdictions, and a discrete income tax benefit for a reduction in unrecognized tax benefits in connection with the expiration of the statute of limitations in a foreign jurisdiction and the settlement of a foreign income tax audit.

The Company’s total unrecognized tax benefits as of March 31, 2024 and 2023 were approximately $2.2 million and $2.9 million, respectively.