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Income Taxes
6 Months Ended
Jun. 30, 2022
Income Taxes  
Income Taxes

10. Income Taxes

The “Provision for income taxes” in the accompanying Condensed Consolidated Statements of Income is based on an estimate of the Company’s annualized effective income tax rate.

Uncertain Tax Positions

Uncertain tax position liabilities represent the aggregate tax effect of differences between the tax return positions and the amounts otherwise recognized in the consolidated financial statements and are recognized in “Income taxes payable” in the Condensed Consolidated Balance Sheets. Interest and penalties are accrued on the uncertain tax positions and included in the “Provision for income taxes” in the accompanying Condensed Consolidated Statements of Income. While the Company believes the liabilities recognized for uncertain tax positions are adequate to cover reasonably expected tax risks, there can be no assurance that an issue raised by a tax authority will be resolved at a cost that does not exceed the liability recognized.

During 2021, in connection with the INTEGRA acquisition, the Company assumed an uncertain tax position related to certain U.S. tax matters and recorded a largely offsetting related indemnification asset. See Note 5, Acquisitions for further details.

During 2021, the Company settled uncertain tax positions related to certain foreign tax matters that were accrued in prior years. The Company also recognized additional uncertain tax positions related to the INTEGRA acquisition.

A reconciliation of the beginning and ending uncertain tax position amounts, excluding interest and penalties is as follows:

As of June 30, 

2022

2021

Balance, January 1

$

1,587

$

5,300

Increases related to prior period tax positions

96

Decrease related to prior year tax positions

(815)

Increase related to tax positions from acquired companies

309

Settlements

(3,776)

Foreign currency transaction (gains) losses

380

Balance, June 30

$

1,896

$

1,185

A portion of the Company’s uncertain tax positions have a reasonable possibility of being settled within the next 12 months.