Income Taxes

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

9.Income Taxes

For the three months ended March 31, 2023 and 2022, the Company recorded an income tax provision of $7.3 million and $12.0 million, respectively. The Company’s effective tax rate for the three months ended March 31, 2023 and 2022 was 20.1% and 20.3%, respectively. The decrease in effective tax rates between the periods was primarily due to lower income before taxes and increased benefits from business tax credits and windfall benefits recognized on stock option exercises and the vesting of stock units, partially offset by nondeductible contingent consideration and lower foreign-derived intangible income.

On August 16, 2022, the United States enacted the Inflation Reduction Act of 2022 ("Inflation Reduction Act"), which, among other things, implements a 15% alternative minimum tax on global adjusted financial statement income of certain large corporations, a 1% excise tax on net stock repurchases and several tax incentives to promote clean energy and was effective beginning in 2023. We evaluated the provisions of the Inflation Reduction Act and no provision had a material effect on our consolidation financial position or results of operations.