INCOME TAXES

9 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The Company's quarterly income tax provision is measured using an estimate of its consolidated annual effective tax rate, which includes the impact of foreign withholding tax accruals and uncertain tax positions, adjusted for discrete items, within the periods presented. The comparison of the Company's income tax provision between periods can be significantly impacted by the level and mix of earnings and losses by tax jurisdiction and discrete items.

For the three months ended September 30, 2023, the Company recognized income tax expense of $15.3 million, as compared to $16.5 million in the same period for 2022. For the nine months ended September 30, 2023, the Company recognized income tax expense of $53.4 million, as compared to $60.4 million in the same period for 2022. Income tax expense includes a U.S. tax benefit provided with respect to foreign earnings and the impact of changes to the level and mix of earnings, offset by an increase in foreign withholding tax accruals for the three and nine months ended September 30, 2023.

The effective tax rate for the three and nine months ended September 30, 2023 was adversely impacted by expenses, which will not be able to be deducted on the Company's 2023 tax return but which reduced the Company's pre-tax income, including a goodwill impairment of $80.0 million in the third quarter of 2023 and the recognition of $15.7 million of research and development costs associated with the Kuprion acquisition in the second quarter of 2023; both of which did not impact expenses in the prior year period.