Provision for Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Provision for Income Taxes

Note 11. Provision for Income Taxes

The effective tax rate used for interim periods is the estimated annual effective consolidated tax rate, based on the current estimate of full year results, except that taxes related to specific events, if any, are recorded in the interim period in which they occur. The annual effective tax rate is based upon several significant estimates and judgments, including the estimated annual pre-tax income of the Company in each tax jurisdiction in which it operates, and the development of tax planning strategies during the year. In addition, the Company’s tax expense can be impacted by changes in tax rates or laws and other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions.

The Company recorded consolidated provision for income taxes of $2.7 million and $51.1 million for the three and six months ended June 30, 2022, respectively, compared with $23.6 million and $90.1 million for the three and six months ended June 30, 2021, respectively. The Company’s effective tax rates were 19% and 24% for the three and six months ended June 30, 2022, respectively, compared with 24% and 25% or the three and six months ended June 30, 2021, respectively. The decrease in the effective tax rate for the three and six months ended June 30, 2022, relative to 2021, was primarily attributable to international restructuring.

The Company is not currently under examination by any major income tax jurisdiction. During 2022, the statutes of limitations will lapse on the Company's 2018 federal tax year and certain 2017 and 2018 state tax years. The Company does not believe the federal or state statute lapses or any other event will significantly impact the balance of unrecognized tax benefits in the next twelve months. The net balance of unrecognized tax benefits was not material to the interim financial statements for the three and six months ended June 30, 2022 and 2021.