Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

Our effective income tax rates for the six months ended June 30, 2022 and 2021 are as follows:

	Six Months Ended June 30,
	2022		2021
Effective Tax Rate	26.0	%	23.0	%

The higher effective tax rate for the six months ended June 30, 2022 was primarily due to the unfavorable impact of net currency exchange losses in 2022.

The effective tax rate for the six months ended June 30, 2022 differs from the U.S. Federal statutory rate due to various items that impacted the effective rate both favorably and unfavorably. We recorded the unfavorable impact of net currency exchange losses, increase in valuation allowance and increase in unrecognized tax benefits. These adjustments were offset by the favorable adjustments for earnings in jurisdictions where the statutory rate is lower than the U.S. Federal statutory rate.

The Company anticipates that it is reasonably possible it will settle up to $10.6 million, exclusive of interest and penalties, of its current unrecognized tax benefits within the next 12 months due to the expected conclusion of ongoing tax audits.