INCOME TAXES

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The effective tax rate for the three months ended June 30, 2024 was 35.0% versus 22.9% for the three months ended June 30, 2023. The effective tax rate for the six months ended June 30, 2024 and June 30, 2023 was 34.9% and 44.5%, respectively. The effective tax rate for the three months ended June 30, 2024 was higher than the same period in the prior year due to the sale of the industrial motors and generators businesses. The effective tax rate for the six months ended June 30, 2024 was lower than the same period in the prior year due to lower non-deductible transaction related expenses from the Altra acquisition, partially offset by the impact of the sale of the industrial motors and generators businesses.

As of June 30, 2024 and December 31, 2023, the Company had approximately $5.4 million and $8.5 million, respectively, 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 $1.2 million and $1.1 million of accrued interest as of June 30, 2024 and December 31, 2023, respectively.