INCOME TAXES

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

(8) INCOME TAXES

The Company’s effective tax rate was 32.5%, 40.1%, 38.8%, and 32.5% for the three and nine months ended September 30, 2022 and 2021, respectively. The effective tax rate in the three and nine months ended September 30, 2022 is primarily influenced by the mix of income between the Company’s U.S. and non-U.S. operations, net of changes in valuation allowances offset by the impact of non-deductible or non-taxable changes in fair value of the warrant liabilities. The effective rates for the comparative three and nine month periods in 2021 were primarily influenced by the mix of income between the Company’s U.S. and non-U.S. operations, net of changes in valuation allowances, and reflect the impact of non-deductible or non-taxable changes in fair value of the warrant liabilities as well as a discrete tax adjustment related to legislative changes enacted in the second quarter.

The Company provided U.S. federal income taxes and foreign withholding taxes on all temporary differences attributed to basis differences in foreign subsidiaries that are not considered indefinitely reinvested. As of September 30, 2022, the Company has certain earnings of certain foreign affiliates that continue to be indefinitely reinvested, but it was not practicable to estimate the associated deferred tax liability, due to interaction with other tax laws and regulations in the year of inclusion.