Income Taxes

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 18 — Income Taxes

The effective tax rates for the three and nine months ended September 30, 2022 and 2021 are as follows:

	Three Months Ended						Nine Months Ended
	September 30,			September 30,			September 30,			September 30,
	2022			2021			2022			2021
Effective tax rate		31.8	%		28.9	%		25.6	%		32.5	%

Our effective income tax rate was 31.8% and 28.9% in the third quarters of 2022 and 2021, respectively. The increase in effective income tax is primarily attributed to a nondeductible cost associated with the termination of the U.S. pension plan incurred in the third quarter of 2022. The third quarter 2022 effective income tax rate was higher than the U.S. statutory federal tax rate primarily due to the

impact of a nondeductible cost associated with the termination of the U.S. pension plan. The third quarter 2021 effective tax rate was higher, primarily due to the non-cash settlement expense related to the final annuity purchase made for the U.S. pension plan termination.

Our effective income tax rate was 25.6% and 32.5% in the nine months ending September 30, 2022 and 2021, respectively. The decrease is primarily attributed to a non-cash settlement expense related to the termination of the U.S. pension plan made in the second and third quarters of 2021. The tax rate in the first nine months of 2022 was higher than the U.S. statutory federal tax rate primarily due to the impact of a nondeductible cost associated with the termination of the U.S. pension plan. The tax rate in the first nine months of 2021 was higher than the U.S. statutory federal tax rate primarily due to settlement expenses related to the termination of the U.S. pension plan made in the second and third quarters of 2021.