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Income Taxes
 6 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes

12. Income Taxes

The Company’s effective tax rates on pre-tax income were 18.6% and 17.9% for the three months ended June 30, 2023 and 2022, respectively, and 17.4% and 18.6% for the six months ended June 30, 2023 and 2022, respectively. The increase in the Company's effective tax rate for the three months ended June 30, 2023 compared to the corresponding period in the prior year was primarily due to discrete tax effects in the current period, partially offset by the effects of the sale of the Company's Business Solutions business and lower amounts of research and development expenses required to be capitalized in the current year. The decrease in the Company's effective tax rate for the six months ended June 30, 2023 compared to the corresponding period in the prior year was primarily due to the effects of the sale of the Company's Business Solutions business and lower amounts of research and development expenses required to be capitalized in the current year, partially offset by discrete tax effects in the current period. The sale of the Business Solutions business has been and will continue to be included in the Company's estimated annual effective rate in accordance with the gains related to each closing.

 

Unrecognized tax benefits are reflected in Income taxes payable in the Condensed Consolidated Balance Sheets. The total amount of unrecognized tax benefits as of June 30, 2023 and December 31, 2022 was $297.5 million and $290.7 million, respectively, including interest and penalties.

 

The Company’s tax filings are subject to examination by U.S. federal, state, and various non-United States jurisdictions. The conclusion of the examination of the Company’s consolidated federal income tax returns for 2017 and 2018 resulted in both agreed and unagreed adjustments. The agreed adjustments have been reflected in the Company’s financial statements. The Company is contesting the unagreed adjustments at the IRS Appeals level and believes its reserves for these unagreed adjustments are adequate. The statute of limitations for the U.S. federal returns for 2017 and 2018 has been extended to March 31, 2024. The Company’s U.S. federal income tax returns since 2019 are also eligible to be examined.