Income Taxes

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Note 9 – Income Taxes

For the three-month period ended June 30, 2023 and 2022, the Company’s effective tax rate was 26% and 23%, respectively. The higher effective tax rate for the three months ended June 30, 2023 compared to the three months ended June 30, 2022 was primarily due to the unfavorable impact from the mix of earned income in certain foreign jurisdictions, as well as an increase in the limitations on the deductibility of executive compensation. For the six-month period ended June 30, 2023 and 2022, the Company’s effective tax rate was 25% and 18%, respectively. The higher effective tax rate for the six months ended June 30, 2023 compared to the six months ended June 30, 2022 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 in 2022, an increase in the limitation on the deductibility of executive compensation as well an unfavorable impact from the mix of earned income in certain foreign jurisdictions.

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 period ended June 30, 2023, the Company did not record any additional valuation allowances in various jurisdictions on their deferred tax assets.

For the six-month periods ending June 30, 2023, the Company did not record any new uncertain tax positions.