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

(7) Income Taxes

 

We recorded income tax expense at an effective rate of 31.9% for the three months ended June 30, 2023, as compared to an effective rate of 29.8% for the three months ended June 30, 2022. The 2023 rate was favorably impacted by the scheduled reduction in the French business tax rate from 0.75% to 0.375% effective January 1, 2023 and unfavorably impacted by a lower level of pre-tax earnings with a less beneficial mix due in part to restructuring costs recorded in the second quarter of 2023. In certain countries in which we recorded restructuring costs, we did not recognize a corresponding tax benefit due to the recognition of valuation allowances against anticipated tax losses. The 31.9% effective tax rate for the second quarter of 2023 was higher than the United States Federal statutory rate of 21% primarily due to the French business tax, tax losses in certain countries for which we did not recognize a corresponding tax benefit due to valuation allowances, and the overall mix of earnings.

 

We recorded income tax expense at an effective rate of 30.6% for the six months ended June 30, 2023, as compared to an effective rate of 31.0% for the six months ended June 30, 2022. The 2023 rate was favorably impacted by the scheduled reduction in the French business tax rate from 0.75% to 0.375% effective January 1, 2023. The 30.6% effective tax rate for the first half of 2023 was higher than the United States Federal statutory rate of 21% primarily due to the French business tax, tax losses in certain countries for which we did not recognize a corresponding tax benefit due to valuation allowances, and the overall mix of earnings.

 

As of June 30, 2023, we had gross unrecognized tax benefits related to various tax jurisdictions, including interest and penalties, of $75.0. If recognized, the entire amount would favorably affect the effective tax rate except for $6.0. As of December 31, 2022, we had gross unrecognized tax benefits related to various tax jurisdictions, including interest and penalties, of $81.6.

 

We conduct business globally in various countries and territories. We are routinely audited by the tax authorities of the various tax jurisdictions in which we operate. Generally, the tax years that could be subject to examination are 2016 through 2023 for our major operations in France, Italy, the United Kingdom and the United States. As of June 30, 2023, we were subject to tax audits in Austria, Belgium, Germany, India, Ireland, Israel, Korea, Spain, Philippines and the United States. We believe that the resolution of these audits will not have a material impact on earnings.