XML 27 R17.htm IDEA: XBRL DOCUMENT v3.22.2
Income tax provision
 6 Months Ended
Jun. 30, 2022
Income Tax Disclosure [Abstract]  
Income tax provision
The effective tax rate on pretax income reconciles to the U.S. federal statutory tax rate as follows:

Six Months Ended June 30, 2022Year Ended December 31, 2021
Income tax at federal statutory rate21.0 %21.0 %
Change in valuation allowance14.9 %0.1 %
Tax impact of share-based compensation5.3 %0.9 %
State income tax expense, net of federal income tax benefit2.6 %2.4 %
Non-deductible executive compensation2.4 %1.7 %
Foreign tax rate differences1.7 %1.7 %
Tax on repatriation of foreign earnings1.4 %4.9 %
Non-deductible acquisition costs0.1 %1.5 %
Sale of business (Note 6)(18.3 %)— 
Research and development tax credit(1.1 %)(0.9 %)
Other(0.3 %)(0.2 %)
Effective tax rate29.7 %33.1 %
In May 2022, we completed the sale of our Australian web hosting business, and we recognized a capital loss on the transaction for tax purposes. We recorded a valuation allowance for the portion of the capital loss carryover we do not currently expect to realize.