Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The computation of the provision for or benefit from income taxes for interim periods is determined by applying the estimated annual effective tax rate to year-to-date income before tax and adjusting for discrete tax items recorded in the period, if any.

The Company recorded a tax provision of $4.0 million and $5.4 million for the three months ended June 30, 2021 and 2022, respectively, which resulted in an effective tax rate of 54.2% and 31.8%, respectively. The Company recorded a tax provision of $4.6 million and $9.5 million for the six months ended June 30, 2021 and 2022, respectively, which resulted in an effective tax rate of 53.1% and 34.7%, respectively. For the three

and six months ended June 30, 2021 and 2022, the effective rate differs from the statutory rate mainly due to a jurisdictional mix of earnings and permanent items. The decrease in the effective tax rate from the three and six months ended June 30, 2021 to the three and six months ended June 30, 2022 is primarily driven by a lower effective tax rate impact from permanent differences due to the increase in income before taxes in the three and six months ended June 30, 2022.