INCOME TAXES

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXESThe Company’s effective tax rate from continuing operations for the nine month period ended September 30, 2022 was 20.1 percent as compared to 17.4 percent for the nine month period ended September 30, 2021. The effective tax rate is lower than the U.S. statutory rate of 21 percent primarily due to the recognition of the U.S. foreign-derived intangible income (FDII) provisions and certain discrete events including excess tax benefits from share-based compensation partially offset by state taxes. For the third quarter of 2022, the effective tax rate was 18.5 percent compared to 18.3 percent for the third quarter of 2021.

The increase in the effective tax rate for the nine month period ended September 30, 2022 was primarily a result of less favorable discrete events recorded in the nine month period ended September 30, 2022, as compared to the nine month period ended September 30, 2021, primarily related to excess tax benefits from share based compensation.

During the third quarter of 2022, the Company recorded $1.1 million of benefit from the reconciliation of the domestic federal return to the provision predominantly related to additional FDII benefit. During the third quarter of 2021, the Company recorded $0.8 million of excess tax benefits from share-based compensation.