INCOME TAXES

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The effective tax rate for the three months ended September 30, 2024 was 10.3% versus (10.1)% for the three months ended September 30, 2023. The effective tax rate for the nine months ended September 30, 2024 and September 30, 2023 was 25.4% and (45.9)%, respectively. The effective tax rate for the three months ended September 30, 2024 was higher than the same period in 2023 due to the impacts of the sale of the industrial motors and generators businesses, partially offset by discrete tax benefits associated with a reduction in withholding taxes. The effective tax rate for the nine months ended September 30, 2024 was higher than the same period in 2023 due to the impacts of the sale of the industrial motors and generators businesses, partially offset by lower non-deductible transaction related expenses from the Altra acquisition and discrete tax benefits associated with a reduction in withholding taxes.

As of September 30, 2024 and December 31, 2023, the Company had approximately $5.7 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 $1.3 million and $1.1 million of accrued interest as of September 30, 2024 and December 31, 2023, respectively.