Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income TaxesFor the three and six months ended June 30, 2022, income tax expense was $33.0 million and $74.7 million, respectively, representing an effective tax rate of 27% for both periods. The items resulting in variances from the federal statutory rate of 21% for the three and six months ended June 30, 2022 primarily consist of state and local income tax expense and tax expense for an increase in the valuation allowance for foreign taxes.

For the three and six months ended June 30, 2021, income tax expense was $11.3 million and $37.2 million, respectively, representing an effective tax rate of 21% for both periods, which was equal to the federal statutory rate. The effective tax rate for the three months ended June 30, 2021 was impacted by state and local income tax expense and tax expense for an increase in valuation allowances for foreign taxes and U.S. foreign tax, partially offset by a tax benefit from foreign operations. The effective tax rate for the six months ended June 30, 2021 was impacted by a discrete tax benefit for excess tax benefits related to stock compensation, partially offset by state and local income tax expense.

At June 30, 2022, the Company had foreign tax credit carry forwards of approximately $42.9 million, expiring on various dates from 2022 through 2032. These carryforwards have been reduced by a valuation allowance of $42.9 million as it is more likely than not that these carry forwards will not be realized. For the six months ended June 30, 2022, $0.5 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).