Income Taxes

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

8.Income Taxes

The Company’s effective tax rate (“ETR”) is calculated quarterly based upon current assumptions relating to the full year’s estimated operating results and various tax-related items. The 2023 second quarter and year-to-date ETR was (64.6)% and 53.5%, respectively, and the 2022 second quarter and year-to-date ETR was 26.8% and 25.3%, respectively.

The ETR was higher in the 2023 second quarter and year-to-date periods as compared with the corresponding 2022 periods primarily due to the increased losses of the Company's foreign subsidiaries for which no tax benefit can be recorded due to valuation allowances.

The Company has not recorded a U.S. deferred tax liability for the excess book basis over the tax basis of its investments in foreign subsidiaries as these amounts continue to be indefinitely reinvested in foreign operations.