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Income Taxes
 9 Months Ended
Sep. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE L – INCOME TAXES

The Company’s effective tax rate was 33% and 22% for the three-month periods ended September 30, 2022, and 2021, and 23% and 28% for the nine-month periods ended September 30, 2022 and 2021, respectively. The higher effective tax rate for the three months ended September 30, 2022 compared to the three months ended September 30, 2021 was primarily due to the unfavorable impact of non-deductible goodwill impairment recorded in the third quarter in the Asia-Pacific region (as disclosed in Note I), a decrease in the research and development tax credit, partially offset by the release of the valuation allowance on deferred tax assets for the Company’s Australian subsidiary of approximately $1.4 million as the Company determined these deferred tax assets are now more likely than not to be realized. The lower effective tax rate for the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021 was primarily due to a non-taxable benefit of $4.4 million related to the proceeds from a settlement of a Company-owned life insurance policy, the release of the valuation allowance on deferred tax assets for the Company’s Australian subsidiary of approximately $1.4 million and lower net unfavorable permanent adjustments which were partially offset by goodwill impairment recorded in the third quarter in the Asia-Pacific region (as disclosed in Note I).

There were no significant changes to any of the balances of unrecognized tax benefits for the nine-month period ended September 30, 2022 or the year ended December 31, 2021.