Income Tax Matters

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Income Tax Matters

10. Income Tax Matters

The following table presents the income tax provision by region (in millions of dollars):

	Quarter Ended March 31,
	2023			2022
Domestic	$	(4.4	)	$	(2.9	)
Foreign		(0.5	)		(0.4	)
Total	$	(4.9	)	$	(3.3	)

The income tax provision for the quarters ended March 31, 2023 and March 31, 2022 was $4.9 million and $3.3 million, respectively, reflecting an effective tax rate of 24% and 29%, respectively. There was no material difference between the effective tax rate and the blended statutory tax rate for the quarter ended March 31, 2023.

The difference between the effective tax rate and the projected blended statutory tax rate for the quarter ended March 31, 2022 was primarily due to: (i) an increase of 4% of pre‑tax income for the recognition of excess book benefits from stock based compensation; (ii) an increase of 1% of pre-tax income related to state tax adjustments for certain state net operating losses; and (iii) an increase of 1% of pre-tax income related to non‑deductible compensation expense, partially offset by a decrease of 2% of pre‑tax income related to a Federal Research and Development credit.

Our gross unrecognized benefits relating to uncertain tax positions were $5.5 million and $5.0 million at March 31, 2023 and December 31, 2022, respectively, of which, $5.5 million and $5.0 million would be recorded through our income tax provision and thus, impact the effective tax rate at March 31, 2023 and December 31, 2022, respectively, if the gross unrecognized tax benefits were to be recognized.

We do not expect our gross unrecognized tax benefits to significantly change within the next 12 months.