Income Taxes

9 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company adjusts its effective tax rate each quarter to be consistent with the estimated annual effective tax rate. The Company also records the tax effect of unusual or infrequently occurring discrete items.

The provision for income taxes is shown in the tables below:

	Three Months Ended September 30
	2023		2022
Income tax expense	$	5,012	$	6,243

	Nine Months Ended September 30
	2023		2022
Income tax expense	$	2,936	$	7,137

Income tax expense decreased $1.2 million to $5.0 million in the third quarter of 2023 as compared to $6.2 million in the third quarter of 2022, primarily due to a decrease in the pre-tax income in the third quarter of 2023 as compared to the same period in 2022.

Income tax expense decreased $4.2 million to $2.9 million for the first nine months of 2023 as compared to $7.1 million for the first nine months of 2022, primarily due to a decrease in the pre-tax income in the first nine months of 2023 as compared to 2022.

The Company’s effective tax rate was 11.4% before discrete items as of September 30, 2023 and September 30, 2022.

The Company had unrecognized tax benefits of approximately $14.8 million and $16.9 million as of September 30, 2023 and 2022, respectively. Included in the balance of unrecognized tax benefits as of September 30, 2023 and 2022, is $4.6 million and $4.2 million, respectively, of tax benefits that, if recognized, would result in an adjustment to the Company’s effective tax rate. The Company does not expect its unrecognized tax benefits to change significantly within the next 12 months.