Income Taxes

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

8.Income Taxes

The Company’s effective tax rate (“ETR”) is calculated quarterly based upon current assumptions relating to the full year’s estimated operating results and various tax-related items. The 2023 and 2022 first quarter ETR was 34.0% and 23.9%, respectively.

The ETR was higher in the 2023 first quarter as compared with the corresponding 2022 period primarily due to the tax benefit for windfalls from equity-based compensation transactions in the 2022 first quarter.

The Company has not recorded a U.S. deferred tax liability for the excess book basis over the tax basis of its investments in foreign subsidiaries as these amounts continue to be indefinitely reinvested in foreign operations.