Income Taxes

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes 

Income tax expense related to continuing operations for the three months ended March 31, 2023 and March 31, 2022 was $6.9 million and $1.2 million, respectively. Income tax expense increased in 2023 primarily due to improved business performance in the CE segment and the gain on the relocation of an HE site, as well as the increased disallowed interest expense in the U.S. resulting from higher interest expense on the Company's Senior Secured Credit Facilities.

The Company has historically calculated its quarterly tax provision based on its best estimate of the full year tax rate applicable to the quarter. In the first quarter 2023, due to the insignificant amount of pre-tax book loss relative to the size of permanent book-tax differences and a varying net income/(loss) pattern projected for the year, the Company’s tax provision estimate was determined using an actual year-to-date method. In the prior year, the estimate was based on the forecasted full year rate.

The reserve for uncertain tax positions on March 31, 2023 was $4.2 million, including interest and penalties.  Within the next twelve months, it is reasonably possible that $1.3 million unrecognized income tax benefits will be recognized upon settlement of tax examinations and the expiration of various statutes of limitations.