Income Taxes

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The following table presents components of income tax expense for the three and six months ended June 30, 2023 and 2022:

	Three months ended June 30,				Six months ended June 30,
(in thousands, except percentages)	2023		2022		2023		2022
Income tax based on income from operations (1)	$	13,909	$	15,165	$	24,967	$	26,107
Provision for change in estimated tax rate	124		66		124		66
Income tax before discrete items	14,033		15,231		25,091		26,173
Discrete tax expense:
Exercise of U.S. stock options	—		—		—		(9)
Impact of amended tax returns	—		(17)		—		(98)
True-up of prior year estimated taxes	1,941		(612)		1,396		(508)
Enacted tax legislation and rate change	—		—		313		—
Provision for/resolution of tax audits and contingencies, net	750		(146)		778		(140)
Impact of long range tax planning	—		—		(443)		—
Withholding tax related to internal restructuring	3,026		—		3,026		—
Other	330		2		540		38
Total income tax expense/(benefit)	$	20,080	$	14,458	$	30,701	$	25,456
(1) Income tax is calculated at estimated annualized effective tax rate of 29.7% and 28.2% for the three and six months ended June 30, 2023 and 2022, respectively.

Income tax expense for the quarter was computed in accordance with ASC 740-270, Income Taxes – Interim Reporting. Under this method, loss jurisdictions, which cannot recognize a tax benefit with regard to their generated losses, are excluded from the annual effective tax rate calculation and their taxes will be recorded discretely in each quarter.