Income Taxes

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 12 - INCOME TAXES

The estimated annual effective tax rate is forecasted quarterly using actual historical information and forward-looking estimates and applied to year-to-date ordinary income. The tax effects of unusual or infrequently occurring items, including changes in judgment about valuation allowances, settlements with taxing authorities and effects of changes in tax laws or rates, are reported in the interim period in which they occur.

The income tax provision for the three months ended March 31, 2022 was $3.5 million on a pre-tax income of $13.6 million, resulting in an effective income tax rate of 25.9 percent. The effective income tax rate for the three months ended March 31, 2022 differs from the statutory rate primarily due to U.S. and Germany valuation allowances, the reversal of an uncertain tax position and the mix of earnings among tax jurisdictions.

The income tax provision for the three months ended March 31, 2021 was $0.8 million on pre-tax earnings of $13.9 million, resulting in an effective income tax rate of 5.8 percent. The effective income tax rate for the three months ended March 31, 2021 differed from the statutory rate primarily due to U.S. valuation allowances, the reversal of an uncertain tax position and the mix of earnings among tax jurisdictions.