XML 33 R22.htm IDEA: XBRL DOCUMENT v3.23.3
Income Taxes
 9 Months Ended
Sep. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes

12. Income Taxes

The Company’s effective tax rates on pre-tax income were 16.3% and 10.2% for the three months ended September 30, 2023 and 2022, respectively, and 17.1% and 16.5% for the nine months ended September 30, 2023 and 2022, respectively. The increases in the Company's effective tax rates for the three and nine months ended September 30, 2023 compared to the corresponding periods in the prior year were primarily due to discrete tax benefits in the prior periods, including the effects of the completion of the IRS examination discussed below, partially offset by the effects of the sale of the Company's Business Solutions business in the current periods compared to the prior periods. The sale of the Business Solutions business has been 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 September 30, 2023 and December 31, 2022 was $301.5 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, 2025. The Company’s U.S. federal income tax returns since 2020 are also eligible to be examined.