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Income Taxes
 9 Months Ended
Sep. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes
9. Income Taxes
The Company computes its provision for interim periods by applying its estimated annual effective tax rate to its anticipated net income (loss). The Company’s effective tax rates for the three and nine months ended September 30, 2023 and 2022, are less than the U.S. federal statutory income tax rate of 21% primarily due to the valuation allowance in the U.S. The Company’s effective tax rate is (0.3)% and (1.2)% for the three months ended September 30, 2023 and 2022, respectively, and the Company’s effective tax rate is (0.6)% and (0.3)% for the nine months ended September 30, 2023 and 2022, respectively.

Deferred income taxes reflect the impact of carryforwards and temporary differences between the amounts of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws. The carryforwards and temporary differences give rise to a significant portion of the Company’s deferred tax assets and liabilities. The Company continues to maintain a valuation allowance against its deferred tax assets in the U.S.

The Company has not recognized any liabilities for uncertain tax positions or unrecognized benefits as of September 30, 2023 and December 31, 2022. The Company does not expect any material change in uncertain tax benefits within the next 12 months.
As of September 30, 2023, the Company has earnings from its wholly-owned non-U.S. subsidiaries indefinitely reinvested outside the U.S. The Company does not intend to repatriate these earnings or realize the outside basis differences in its foreign subsidiaries and, accordingly, the Company has not provided any taxes for those amounts, given the indefinite reinvestment, and it is not practicable to estimate the amount of deferred tax liability that would be incurred.