Income Taxes |
3 Months Ended |
|---|---|
Mar. 31, 2023 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes For the three months ended March 31, 2023 and 2022, our provision for income taxes, as a percentage of income before income taxes was 25.7 percent and 369.9 percent, respectively, compared with a U.S. federal statutory rate of 21.0 percent.
The difference between the effective tax rate and the U.S. federal statutory tax rate for the three months ended March 31, 2023, was primarily attributed to an increase in tax liability related to foreign operations which are treated as a branch for US tax purposes and current year foreign losses that presently do not provide future tax benefit, partially offset by favorable adjustments to deferred tax assets and foreign tax credits.
The difference between the effective tax rate and the U.S. federal statutory tax rate for the three months ended March 31, 2022, was primarily attributed to recording a valuation allowance against deferred tax assets for which we do not expect to receive a benefit.
The difference between the effective tax rate for the three months ended March 31, 2023 compared to March 31, 2022 is primarily caused by recording a valuation allowance in the prior period against deferred tax assets for which we do not expect to receive a benefit.
Our U.S. federal income tax returns for 2019 through 2021 are open to examination for federal tax purposes. We have several foreign tax jurisdictions with open tax years from 2017 through 2022.
As of March 31, 2023 and December 31, 2022, we have accrued $0.2 million and $0.2 million, respectively, related to unrecognized tax positions.
Interim income taxes are based on an estimated annualized effective tax rate applied to the respective quarterly periods, adjusted for discrete tax items in the period in which they occur. Although we believe our tax estimates are reasonable, we can make no assurance that the final tax outcome of these matters will not be different from that which we have reflected in our historical income tax provisions and accruals. Such differences could have a material impact on our income tax provision and operating results in the period in which we make such determination.
|