Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

NOTE L – INCOME TAXES

The Company’s effective tax rate was 23% and 29% for the three-month periods ended June 30, 2022 and 2021, and 18% and 31% for the six-month periods ended June 30, 2022 and 2021, respectively. The lower effective tax rate for the three months ended June 30, 2022 compared to the three months ended June 30, 2021 was primarily due to the favorable impact from the mix of earned income in certain foreign jurisdictions, as well as a decrease in the limitations on the deductibility of executive compensation. The lower effective tax rate for the six months ended June 30, 2022 compared to the six months ended June 30, 2021 was primarily due to non-taxable benefit of $4.4 million related to the proceeds from a settlement of a Company-owned life insurance policy and other favorable discrete items.

The Company provides valuation allowances against deferred tax assets when it is more likely than not that some portion or all of its deferred tax assets will not be realized. During the first half of the year ended June 30, 2022, the Company recorded additional valuation allowances in various jurisdictions on their deferred tax assets, that are not expected to be realizable.

There were no significant changes to any of the balances of unrecognized tax benefits for the six-month period ended June 30, 2022 or the year ended December 31, 2021.