INCOME TAXES

9 Months Ended

Sep. 30, 2022

INCOME TAXES

INCOME TAXES

12. INCOME TAXES

The effective tax rate was 28.9% and 20.7% for the three months ended September 30, 2022 and 2021, respectively, and 29.5% and 24.8% for the nine months ended September 30, 2022 and 2021, respectively. The increase in the effective tax rate for the three month period primarily related to increases in nondeductible items over those in the prior year period and greater discrete tax benefits recorded in the prior year period. Increases in nondeductible items over those in the prior year period, and greater discrete tax benefits recorded in the prior year, as well as a decrease in Income from continuing operations before income taxes, drove the increase in the effective tax rate for the nine month period.

On August 16, 2022, the Inflation Reduction Act (the Act) was signed into law in the United States of America. The Company is evaluating the Act and does not anticipate a significant impact on its financial position, results of operations or cash flows, nor does it expect significant changes to accounting policies, business processes or internal controls as a result of the Act.

The Company is under examination by the Internal Revenue Service as well as tax authorities in various states. The tax years under examination and open for examination vary by jurisdiction, but with some exceptions, the tax returns filed by the Company are no longer subject to U.S. federal income tax and state and local examinations for the years before 2015 or foreign income tax examinations for years before 2018.