INCOME TAXES

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

The effective tax rate for the three months ended June 30, 2023 and 2022 was 27.2% and 26.5%, respectively. For the three months ended June 30, 2023 and 2022, the effective tax rates reflect discrete income tax benefits of $0.9 million and $0.3 million, respectively, resulting from the exercise and vesting of stock-based awards. These discrete income tax benefits reduced the effective tax rates in such periods by approximately 0.3 and 0.1 percentage points, respectively.

The effective tax rate for the six months ended June 30, 2023 and 2022 was 22.9% and 22.6%, respectively. For the six months ended June 30, 2023 and 2022, the effective tax rates reflect discrete income tax benefits of $22.1 million and $6.1 million, respectively, resulting from the exercise and vesting of stock-based awards. For the six months ended June 30, 2022, the effective tax rate also reflects a discrete income tax benefit of $13.4 million resulting from a reduction to the valuation allowance recorded against foreign tax credit carryforwards. These discrete income tax benefits reduced the effective tax rates in such periods by approximately 4.4 and 3.7 percentage points, respectively.

The effective tax rate differs from the federal statutory income tax rate due primarily to state income taxes, nondeductible expenses, and the inclusion of global intangible low-taxed income.

There have been no material adjustments to liabilities for uncertain tax positions since December 31, 2022.