INCOME TAXES

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The effective tax rates for the three months ended March 31, 2023 and 2022 were 27.6% and 33.5%, respectively. The effective tax rate for the three months ended March 31, 2023 was negatively impacted by discrete tax expense associated with prior periods. The higher 2022 effective tax rate was similarly impacted by discrete tax expense associated with the derecognition of certain deferred tax assets in Russia and tax reserves recorded on previously claimed tax benefits.

As in all financial reporting periods, the Company assessed the realizability of its deferred tax assets, which relate to multiple tax jurisdictions in all regions of the world. During the three-month period ended March 31, 2023, there were no changes in our assessment of deferred tax asset positions that impacted the Company’s tax rate for the period. During the three-month period ended March 31, 2022, the Company changed its assessment regarding the recognition of its Russian deferred tax assets and applied a full valuation allowance that increased the Company’s prior year effective tax rate by 5.1% for the period.

The Company operates in many jurisdictions around the world and is routinely subject to income tax audits. As various ongoing audits are concluded, or as the applicable statutes of limitations expire, it is possible the Company’s amount of unrecognized tax benefits could change during the next twelve months. Those changes, however, are not expected to have a material impact on the Company’s results of operations, balance sheet, or cash flows.