Income Taxes

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Our effective income tax rate was 28.9% and 25.4% for the three months ended June 30, 2023 and 2022, respectively. The increase from the second quarter of 2022 was primarily due to the increase in the valuation allowance attributable to loss jurisdictions in which no benefit is anticipated to be realized. Our effective income tax rate was 33.2% and 22.2% for the six months ended June 30, 2023 and 2022, respectively. The increase from the first half of 2022 was primarily due to the increase in the valuation allowance attributable to loss jurisdictions in which no benefit is anticipated to be realized and the decrease in the excess tax benefits associated with stock compensation windfalls.

The total amount of unrecognized tax benefits as of June 30, 2023 was $9.0 million, of which $7.9 million would affect our effective tax rate if recognized. Additionally, the balance of unrecognized tax benefits as of June 30, 2023 also included $1.1 million of tax benefits that, if recognized, would result in adjustments to other tax accounts, primarily deferred taxes.

We recognize interest and penalties related to unrecognized tax benefits through income tax expense. As of June 30, 2023, we had $1.5 million accrued for the payment of interest.