Income Tax Expense

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Income Tax Expense

NOTE 12. INCOME TAX EXPENSE

	Three Months Ended
	March 31,
	2023			2022
Earnings before income taxes	$	63.9		$	59.4
Income tax expense		16.6			15.0
Effective tax rate		26.0	%		25.3	%

The effective tax rate for the first quarter of 2023 was higher compared to the same period in 2022 due primarily to an increase in our valuation allowance for capital loss carryforwards recorded in the current quarter.

It is reasonably possible that the amount of unrecognized tax benefits could significantly increase or decrease within the next twelve months. However, an estimate of the range of reasonably possible outcomes cannot be reliably made at this time. Changes to unrecognized tax benefits could result from the expiration of statutes of limitations, the completion of ongoing examinations, or other unforeseen circumstances.