Income Taxes

9 Months Ended

Sep. 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 benefit of $12.6 million and a tax provision of $3.5 million for the three months ended September 30, 2021 and 2022, respectively, which resulted in an effective tax rate of 33.3% and 27.2%, respectively. The Company recorded a tax benefit of $8.1 million and a tax provision of $13.0 million for the nine months ended September 30, 2021 and 2022, respectively, which resulted in an effective tax rate of

27.6% and 32.3%, respectively. For the three and nine months ended September 30, 2021 and 2022, the effective rate differs from the statutory rate mainly due to a jurisdictional mix of earnings and permanent items.On August 16, 2022, President Biden signed the Inflation Reduction Act of 2022 (“IRA”) into law. The IRA establishes a 15% corporate minimum tax effective for taxable years beginning after December 31, 2022 for domestic corporations with average annual adjusted financial statement income that exceeds $1.0 billion over a three-year period, and imposes a 1% excise tax on the repurchase after December 31, 2022 of stock by publicly traded U.S. corporations. The Company currently does not expect the tax-related provisions of the IRA to have a material impact on the Company’s financial results.