XML 24 R14.htm IDEA: XBRL DOCUMENT v3.22.2.2
Income Taxes
 9 Months Ended
Sep. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The U.S. federal statutory tax rate was 21% for each of the three and nine months ended September 30, 2022 and 2021. The Company’s effective tax rate for the three and nine months ended September 30, 2022 was 29.4% and 25.0%, respectively, of pretax income compared to the effective tax rate for the three and nine months ended September 30, 2021 of 24.6% and 25.9%, respectively.
The difference between the U.S. federal statutory tax rate and the Company’s effective tax rate for the three months ended September 30, 2022, was primarily due to state income taxes, foreign earnings and other permanent difference items.
The difference between the U.S. federal statutory tax rate and the Company’s effective tax rate for the nine months ended September 30, 2022, was primarily due to state income taxes, foreign earnings and other permanent difference items partially offset by a favorable impact from stock compensation excess tax benefits.
The difference between the U.S. federal statutory tax rate and the Company’s effective tax rate for the three and nine months ended September 30, 2021, was primarily due to state income taxes, foreign earnings and other permanent difference items, partially offset by a favorable impact from stock compensation excess tax benefits. The Company’s effective tax rate for the three months ended September 30, 2021 also benefited from a reversal of the global intangible low tax income (“GILTI”).
The Company had unrecognized tax benefits of approximately $0.5 million and $0.4 million as of September 30, 2022 and December 31, 2021, respectively, which were included in other liabilities in the accompanying consolidated balance sheets.
The Company’s policy is to recognize interest and penalties related to income tax liabilities as a component of income tax expense in the consolidated statements of operations. The amount of interest and penalties charged to income tax expense related to unrecognized tax benefits was not significant for the three and nine months ended September 30, 2022 and 2021.
The Company is subject to taxation in various jurisdictions. The Company’s 2018 through 2020 tax returns are subject to examination by U.S. federal authorities. The Company’s tax returns are subject to examination by various state authorities for the years 2017 through 2020.