Income Taxes

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income TaxesFor the three months ended March 31, 2022, income tax expense was $41.6 million, representing an effective tax rate of 27%, as compared to the federal statutory rate of 21%. The effective tax rate differs from the federal statutory rate due primarily to state and local income tax expense, tax expense related to non-deductible compensation and tax expense for an increase in the valuation allowance for foreign taxes.

For the three months ended March 31, 2021, income tax expense was $25.9 million, representing an effective tax rate of 21%, which was equal to the federal statutory rate. The effective tax rate was impacted by state and local income tax expense, tax expense from nondeductible compensation and tax expense from foreign operations partially offset by a tax benefit from foreign derived intangible income and excess tax benefits related to stock compensation.

At March 31, 2022, the Company had foreign tax credit carry forwards of approximately $40.4 million, expiring on various dates from 2022 through 2032. These carryforwards have been reduced by a valuation allowance of $40.4 million as it is more likely than not that these carry forwards will not be realized. For the three months ended March 31, 2022, $0.3 million relating to amortization of tax deductible second component goodwill was realized as a reduction in tax liability (as determined on a 'with-and-without' approach).