Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company's effective tax rate for the second quarter of 2022 was 24.7%, which differs from the United States of America ("U.S.") federal statutory rate of 21% primarily due to state income taxes and increased profitability in higher tax jurisdictions. The Company's effective tax rate for the second quarter of 2021 was 27.8%, which differs from the U.S. federal statutory rate of 21% primarily due to statutory rate increases in foreign jurisdictions and nondeductible executive compensation, partially offset by tax benefits on certain share-based payments.

On June 10, 2021 the United Kingdom ("U.K.") Parliament announced royal assent for Bill No. 12, on the Finance Act of 2021. This bill will increase the statutory rate from 19% to 25% in April 2023. The Company recorded this impact on its deferred tax balances in the second quarter of 2021.

The Company's effective tax rate for the six months ended June 30, 2022, was 23.5% which differs from the U.S. federal statutory rate of 21% primarily due to state income taxes. The Company's effective tax rate for the six months ended June 30, 2021, was 24.0%, which differs from the U.S. federal statutory rate of 21% primarily due to statutory rate increases in foreign jurisdictions and nondeductible executive compensation, partially offset by tax benefits on certain share-based payments.

At June 30, 2022, the Company had a gross liability for unrecognized tax benefits of $4.8 million. The Company has recognized tax benefits associated with these liabilities of $2.3 million at June 30, 2022. The gross liability includes amounts associated with foreign tax exposure in prior periods.

The Company recognizes interest related to unrecognized tax benefits in interest expense and penalties in operating expenses. The Company's liability for accrued interest related to uncertain tax positions was $0.9 million at June 30, 2022.

We are subject to regular review and audit by both foreign and domestic tax authorities. While we believe our tax positions will be sustained, the final outcome of tax audits and related litigation may differ materially from the tax amounts recorded in our unaudited condensed consolidated financial statements.