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Income Taxes | 9 Months Ended
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Sep. 30, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | 5. Income Taxes The Company recorded income tax expense of $29.9 million, or 33.4% of pre-tax income, for the three months ended September 30, 2022, compared to $0.7 million, or 0.8% of pre-tax income, for the three months ended September 30, 2021. Results for the three months ended September 30, 2022 we re impacted by $0.9 million of discrete tax charges, including a $2.0 million charge related to state provision-to-return true-ups and a $1.0 million charge due to state deferred tax asset re-measurement, offset in part by a $1.8 million tax benefit related to the release of state uncertain tax position reserves due to the lapse of the applicable statutes of limitations. Results for the three months ended September 30, 2021 were impacted by $22.0 million of discrete tax benefits, including an $11.7 million tax benefit associated with the release of a valuation allowance on deferred tax assets in Europe, a $5.4 million tax benefit associated with the implementation of a plan to make certain tax accounting method changes and change the timing of certain deductible payments, allowing the Company to carry back a net operating loss to prior tax years with higher federal statutory tax rates, and a $5.7 million tax benefit related to provision-to-return true-ups. The Company recorded income tax expense of $63.8 million, or 42.3% of pre-tax income, for the nine months ended September 30, 2022, compared to $12.0 million, or 2.9% of pre-tax income, for the nine months ended September 30, 2021. Results for the nine months ended September 30, 2022 were unfavorably impacted by $17.8 million of net discrete tax items, including a charge of $18.1 million related to taxes on previous income as the Company revised its interpretation of certain foreign anti‐hybrid tax legislation based upon comments from the corresponding tax authorities. Results for the nine months ended September 30, 2021 were favorably impacted by $89.3 million of discrete tax benefits, primarily related to the carryback of a net operating loss to previous tax years with higher statutory tax rates of $75.3 million and the release of a valuation allowance on deferred tax assets in Europe of $11.7 million. The Company’s liability for gross unrecognized tax benefits, excluding related interest and penalties, was $77.7 million and $41.5 million as of September 30, 2022 and December 31, 2021, respectively. Included in the Company’s September 30, 2022 liability for gross unrecognized tax benefits is a $23.5 million reserve related to foreign anti‐hybrid legislation and an $18.7 million U.S. federal reserve for a temporary deferred position. As of September 30, 2022, net unrecognized tax benefits, excluding interest and penalties, of $46.1 million would affect the Company’s net income if recognized. The Company recognizes accrued interest and penalties, if any, related to unrecognized tax benefits in the “Provision for income taxes” in the Condensed Consolidated Statements of Income. During the nine months ended September 30, 2022 and 2021, the Company recognized expense of $1.8 million and $0.2 million, respectively, related to interest and penalties. At September 30, 2022, the Company had accruals for the payment of interest and penalties of $8.7 million. During the next twelve months, it is reasonably possible that federal, state and foreign tax audit resolutions could reduce net unrecognized tax benefits by approximately $4.5 million because the Company’s tax positions are sustained on audit, the Company agrees to their disallowance or the statutes of limitations close.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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