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Income Taxes
 9 Months Ended
Sep. 30, 2023
Income Tax Disclosure [Abstract]  
Income Tax Disclosure Income Taxes
The income tax provision includes U.S. federal, state and local, and foreign income taxes and is generally based on the application of a forecasted annual income tax rate applied to the current quarter's year-to-date pre-tax income or loss. In determining the estimated annual effective income tax rate, the Company analyzes various factors, including projections of the Company's annual earnings or losses, taxing jurisdictions in which the earnings or losses will be generated, the impact of state and local income taxes, the Company's ability to use tax credits and net operating loss carryforwards, carrybacks, capital loss carryforwards, and available tax planning alternatives. Discrete items, including the effect of changes in tax laws, tax rates and certain circumstances with respect to valuation allowances or the tax effect of other unusual or nonrecurring transactions or adjustments are reflected in the period in which they occur as an addition to, or reduction from, the income tax provision, rather than included in the estimated annual effective income tax rate. Additionally, the Company's interim effective income tax rate is computed and applied without regard to pre-tax losses where such losses are not expected to generate a current-year tax benefit.

A reconciliation of the U.S. federal statutory rate to the reported income tax rate is as follows:
THREE MONTHS ENDEDNINE MONTHS ENDED
SEPTEMBER 30SEPTEMBER 30
2023202220232022
Income (loss) before income taxes$52.6  $(32.4)$139.3 $(75.5)
Statutory taxes (21%)$11.1 $(6.8)$29.3 $(15.9)
Interim adjustment(0.2)(2.3)(0.5)(3.8)
Permanent adjustments:
Valuation allowance4.2 12.6 4.7 28.5 
Other2.3 0.1 6.7 (0.1)
Discrete items(1.2)0.6 (3.3)(4.7)
Income tax expense$16.2 $4.2 $36.9 $4.0 
Reported income tax rate30.8 %(13.0)%26.5 %(5.3)%
The Company's estimated annual effective income tax rate assumes that a significant portion of its net operating loss carryforwards will be utilized in 2023 along with the release of the associated valuation allowances. This release will be more than offset by the capitalization of research and development expenses under current U.S. tax rules for which a valuation allowance will be provided. The net of these items is included in the valuation allowance line in the table above.

During the first nine months of 2023, the Company recorded other permanent adjustments primarily related to the unfavorable tax effects of non-U.S. rate differences, state income taxes, non-deductible compensation and global intangible low-taxed income, partially offset by favorable tax effects of foreign derived intangible income, federal income tax credits and equity interest earnings.

During the third quarter of 2023, the Company recognized a discrete tax benefit of $1.2 million primarily related to the expiration of the statute of limitations for uncertain tax positions.

During the second quarter of 2023 and 2022, the Company recognized discrete tax benefits of $2.3 million and $4.5 million, respectively, mainly resulting from the expiration of the statute of limitations for uncertain tax positions related to acquisitions. Of those amounts, an offsetting pre-tax indemnity receivable was recorded for $2.1 million and $3.8 million in the second
quarter of 2023 and 2022, respectively. The expense for the release of the indemnity receivable was recorded in pre-tax earnings on the line “Other, net” in the unaudited condensed consolidated statements of operations.