Income Tax

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Income Tax

12. Income Tax

For the three months ended March 31, 2022, the effective tax rate on income (loss) before provision for income tax was 6%. The Company’s effective tax rate for the three months ended March 31, 2022 differed from the U.S. statutory rate primarily due to tax benefits from tax credits, foreign earnings taxed at different rates than the U.S. statutory rate, the corporate tax deduction for stock compensation and non-taxable investment income.

For the three months ended March 31, 2021, the effective tax rate on income (loss) before provision for income tax was (25%), which reflects an income tax benefit despite having income before provision for income tax. The Company’s effective tax rate for the three months ended March 31, 2021 differed from the U.S. statutory rate primarily due to tax benefits from foreign earnings taxed at different rates than the U.S. statutory rate, tax credits, non-taxable investment income, and the corporate tax deduction for stock compensation.