Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

13. Income Taxes

The Company generates income in both U.S. and foreign jurisdictions which is included in income before income taxes in the Condensed Consolidated Statements of Operations. The annual effective tax rate varies from the U.S. federal statutory rate of 21% due to results of foreign operations that are subject to income taxes at different statutory rates. In addition, tax expense is impacted by losses in both the U.S. and certain foreign jurisdictions where no tax benefit can be realized.

For the three months ended June 30, 2022, and 2021, the Company recorded a benefit for income taxes of $7.1 million and a provision for income taxes of $4.0 million, respectively. For the six months ended June 30, 2022, and 2021, the Company recorded a benefit for income taxes of $0.6 million and a provision for income taxes of $8.2 million, respectively. For the three and six months ended June 30, 2022 and 2021, income taxes were impacted by losses in jurisdictions where no tax benefit can be realized. The benefit for income taxes for the three and six months ended June 30, 2022, was primarily driven by a release of a $12.1 million uncertain tax position, inclusive of $1.2 million of interest, related to U.S. Federal tax planning strategies implemented as a result of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”).

The Company’s unrecognized tax benefits, excluding interest and penalties, was $7.5 million and $18.4 million as of June 30, 2022, and December 31, 2021, respectively. The decrease is primarily attributable to the release of a $10.9 million uncertain tax

position related to U.S. Federal tax planning strategies as a result of the CARES Act recorded in the three months ended June 30, 2022.