Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

12. Income taxes

The Company recorded an income tax benefit of $0.2 million and income tax expense of $0.8 million for the three months ended June 30, 2022 and 2021, respectively. The Company recorded an income tax benefit of $0.2 million and income tax expense of $1.8 million for the six months ended June 30, 2022 and 2021, respectively. The Company records no income tax benefits for the net operating losses incurred in each period in the U.K due to the uncertainty regarding the realizability of the deferred tax asset. The Company's income tax relates to its subsidiaries in Europe and the U.S. The Company's income tax computed at its effective income tax rate for the three and six months ended June 30, 2022 differed from income taxes computed at the U.K. statutory tax rate primarily due to provision to return adjustments recorded for certain European subsidiaries, capitalization of research and experimental expenditures under the Internal Revenue Code Section 174, partially offset by an increase in the U.S. deduction for foreign derived intangible income and U.S. tax credits and share-based compensation. The Company's income tax computed at its effective income tax rate for the three and six months ended June 30, 2021 differed from income taxes computed at the U.K. statutory tax rate primarily due to share-based compensation shortfalls.

Effective for tax years beginning on or after January 1, 2022, research and experimental expenditures under Internal Revenue Code Section 174 must be capitalized over five years when performed in the U.S. and 15 years for research and experimental expenditures performed outside of the U.S.