INCOME TAXES

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 6 — INCOME TAXES

The Company reported an income tax expense of $5.1 million for the three months ended September 30, 2022, compared to an income tax benefit of $3.0 million for the three months ended September 30, 2021. The effective tax rates for the three months ended September 30, 2022 and 2021, were 15.4% and 4.4%, respectively. The effective tax rate for the three months ended September 30, 2022, reflects (i) tax benefit from the release of uncertain tax position reserves and (ii) tax benefit associated with the U.S. federal research and development tax credit, partially offset by (iii) losses in jurisdictions that are not eligible for tax benefits on account of valuation allowances, and (iv) equity-based compensation awards expiring without a tax benefit. The effective tax rate for the three months ended September 30, 2021, reflects (i) a nondeductible FCPA Settlement accrual and (ii) losses in jurisdictions that are not eligible for tax benefits on account of valuation allowances, partially offset by (iii) the net tax benefit from divestitures.

The Company reported income tax expense of $16.4 million and $19.9 million for the nine months ended September 30, 2022 and 2021, respectively. The effective tax rates for the nine months ended September 30, 2022 and 2021, were 40.2% and 209.5%, respectively. The effective tax rate for the nine months ended September 30, 2022, reflects (i) losses in jurisdictions that are not eligible for tax benefits on account of valuation allowances, and (ii) equity-based compensation awards expiring without a tax benefit, partially offset by (iii) tax benefit from the release of uncertain tax position reserves. The effective tax rate for the nine months ended September 30, 2021, reflects (i) a nondeductible FCPA Settlement accrual, (ii) losses in jurisdictions that are not eligible for tax benefits on account of valuation allowances, and (iii) equity-based compensation awards expiring without a tax benefit, partially offset by (iv) a tax benefit associated with a tax matter that was subject to a PFA with the IRS and (v) the net tax benefit from divestitures.