Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective tax rate on Net income was 18.8% and 19.4% for the three and six months ended June 30, 2022, respectively. The effective tax rate on Net income was 34.1% and 24.8% for the three and six months ended June 30, 2021, respectively.

For the three and six months ended June 30, 2022, the tax rate was primarily driven by the geographical distribution of income and certain discrete items, primarily the favorable impacts of share-based payments.

For the three and six months ended June 30, 2021, the tax rate was primarily driven by the geographical distribution of income and certain discrete items, primarily the unfavorable impact of the U.K. tax rate increase offset by the favorable impact of share-based payments. The U.K. enacted legislation on June 10, 2021 which increases the corporate income tax rate from 19% to 25% with effect from April 1, 2023. As a result, the Company remeasured its U.K. deferred tax assets and liabilities based on the tax rate in effect when the deferred tax assets and liabilities are expected to be realized.