INCOME TAXES

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The effective tax rate for the three months ended June 30, 2023 was 22.9% versus 22.1% for the three months ended June 30, 2022. The effective tax rate for the six months ended June 30, 2023 and June 30, 2022 was 44.5% and 22.1%, respectively. The effective tax rate for the three months ended June 30, 2023 was higher than the same period in the prior year primarily driven by costs associated with the Altra acquisition. The effective tax rate for the six months ended June 30, 2023 was higher than the same period in the prior year primarily driven by non-deductible transaction costs associated with the Altra Transaction and withholding taxes resulting from foreign cash repatriation.

As of June 30, 2023 and December 31, 2022, the Company had approximately $9.1 million and $5.7 million of unrecognized tax benefits, all of which would impact the effective income tax rate if recognized. Potential interest and penalties related to unrecognized tax benefits are recorded in income tax expense. The Company had approximately $1.1 million and $1.2 million of accrued interest as of June 30, 2023 and December 31, 2022, respectively.