Income Taxes

9 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Income tax expense (benefit) relating to continuing operations of $0.1 and $(1.6) for the three months ended September 30, 2023 and 2022, respectively, represents taxes on both U.S. and foreign earnings at a combined effective income tax rate of 1.0% and (4.0)%, respectively.

Income tax (benefit) expense relating to continuing operations of $(4.2) and $4.0 for the nine months ended September 30, 2023 and 2022, respectively, represents taxes on both U.S and foreign earnings at a combined effective income tax rate of 840.0% and 5.8%, respectively.

The effective income tax rates of 1.0% and 840.0% for the three and nine months ended September 30, 2023 differed from the U.S. federal statutory rate of 21% primarily due to income earned by our certain foreign entities being taxed at higher rates than the U.S. federal statutory rate, the U.S. taxation of international operations with the expanded global footprint and transaction costs from the Howden Acquisition, offset by research and development credits and excess tax benefits associated with share-based compensation.

The effective income tax rates of (4.0)% and 5.8% for the three and nine months ended September 30, 2022 differed from the U.S. federal statutory rate of 21% primarily due to income earned by our certain foreign entities being taxed at higher rates than the U.S. federal statutory rates more than offset by the release of a valuation allowance on certain foreign entities, excess tax benefits associated with share-based compensation and global R&D tax credits. The release of the valuation allowance is due to continued improvement of on-going results in certain foreign jurisdictions over the prior three years and the current year resulting in the recognition of deferred tax assets (and the related deferred tax benefit) that were generated in prior years and year to date that had not been previously recognized.