INCOME TAXES

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

For the three and six months ended June 30, 2022, the Company calculated its effective tax rate estimating its annual effective tax rate, as opposed to the three and six months ended June 30, 2021 whereby the Company calculated its effective tax rate based on year-to-date results. The Company’s effective tax rate for the three and six months ended June 30, 2022 was 28.7% and 28.8%, respectively, including the impact of discrete items, and 28.9% and 29.5%, respectively, excluding discrete items. The Company's effective tax rate for the three and six months ended June 30, 2021 was 22.5% and 12.1%, respectively, including the impact of discrete items, and 9.5% and 6.6%, respectively, excluding discrete items. The effective tax rate for the three and six months ended June 30, 2022 was primarily impacted by federal and state taxes. As a result of the Company's valuation allowance on substantially all of its domestic deferred tax assets, the effective tax rate for the three and six months ended June 30, 2021 was primarily impacted by international taxes, state taxes, and additional valuation allowance required as a result of the WSG acquisition.

During the fourth quarter of 2021, the Company concluded that it was more likely than not that a benefit from a substantial portion of its United States federal and state deferred tax assets would be realized and released the majority of its valuation allowance. As of June 30, 2022 and December 31, 2021, the Company had an immaterial amount of valuation allowance on its deferred tax assets related to state net operating losses not expected to be realized before expiration.

The tax years 2012 through 2021 remain open to examination by certain taxing jurisdictions to which the Company is subject to tax.