Income Taxes

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income TaxesFor the three months ended March 31, 2022, the Company recorded an income tax expense of $0.9 million, reflecting a 18.0% effective tax rate, compared to a $0.8 million income tax expense for the three months ended March 31, 2021, reflecting a 8.6% effective tax rate. The income tax expense for three months ended March 31, 2022 was higher compared to the same period in 2021 primarily due to lower net discrete benefits from the vesting of employee shared-based compensation awards offset by an increased net benefit for foreign-derived income.The Company's recorded liability for uncertain tax positions was $11.1 million and $10.8 million as of March 31, 2022 and December 31, 2021, respectively. The increase is the result of $0.3 million of incremental reserves associated with a higher research and development credit for 2022. The Company does not anticipate a significant change in unrecognized tax benefits

due to the expiration of relevant statutes of limitations and federal, state, and foreign tax audit resolutions over the next twelve months.

The Company regularly assesses the likelihood of an adverse outcome resulting from examinations to determine the adequacy of its tax reserves. The Company is currently under audit by the U.S. Internal Revenue Service for the federal income tax return from the 2018 tax year as well as various other state income tax and jurisdictional audits. As of March 31, 2022, the Company believes that it is more-likely-than-not that the tax positions it has taken will be sustained upon the resolution of its audits resulting in no material impact on its consolidated financial position, results of operations and cash flows. However, the final determination with respect to any tax audits, and any related litigation, could be materially different from the Company's estimates and/or from its historical income tax provisions and accruals and could have a material effect on operating results and/or cash flows in the periods for which that determination is made. In addition, future period earnings may be adversely impacted by litigation costs, settlements, penalties and/or interest assessments.