Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

12. Income Taxes

The Company measures its interim period tax expense using an estimated annual effective tax rate and adjustments for discrete taxable events that occur during the interim period. The estimated annual effective income tax rate is based upon the Company’s estimations of annual pre-tax income, the geographic mix of pre-tax income, and its interpretations of tax laws. The Company updates the estimate of its annual effective tax rate at the end of each quarterly period. The Company recorded income tax expense of $5.7 million and $8.7 million for the three and six months ended June 30, 2022, respectively. The tax expense for the three months ended June 30, 2022 decreased by approximately $0.6 million, as compared to the same period in 2021, primarily due to higher pretax income that resulted a $2.4 million increase in tax expense based on projected effective tax rate and offset by $3.2 million decrease in UK tax rate adjustment. The tax expense for the six months ended June 30, 2022 increased by approximately $1.6 million, as compared to the same period in 2021, primarily due to higher pretax income that resulted in a $4.7 million increase in tax expense based on projected effective tax rate and offset by an approximate $3.2 million decrease attributable to the UK tax rate adjustment. The Company recorded income tax expense of $6.3 million and $7.0 million for the three and six months ended June 30, 2021, respectively.