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Income Taxes
 6 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
For the three months ended June 30, 2023, the Company recorded an income tax provision of $13.4 million on pretax income of $51.5 million, representing an effective tax rate of 26.13%, compared with an income tax provision of $18.6 million on pretax income of $70.7 million, representing an effective tax rate of 26.35% for the three months ended June 30, 2022.
For the six months ended June 30, 2023, the Company recorded an income tax provision totaling $27.1 million on pretax income of $104.3 million, representing an effective tax rate of 26.02%, compared with an income tax provision of $39.9 million on pretax income of $152.7 million, representing an effective tax rate of 26.12% for the six months ended June 30, 2022.
The Company and its subsidiaries are subject to U.S. federal income tax, as well as state income taxes. The Company had total unrecognized tax benefits of $1.8 million at June 30, 2023 and $3.0 million at December 31, 2022, that relate to uncertainties associated with state income tax matters.
Management believes it is reasonably possible that the unrecognized tax benefits may decrease by $1.2 million in the next twelve months due to a settlement with the state tax authorities.
Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities (without regard to certain changes to deferred taxes). Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. In assessing the realization of deferred tax assets, management evaluates both positive and negative evidence, including the existence of any cumulative losses in the current year and the prior two years, the amount of taxes paid in available carry-back years, the forecasts of future income, applicable tax planning strategies, and assessments of current and future economic and business conditions. This analysis is updated quarterly and adjusted as necessary. Based on the analysis, the Company has determined that a valuation allowance for deferred tax assets was not required at June 30, 2023