Income Taxes |
9 Months Ended |
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Sep. 30, 2022 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes In determining its interim provision for income taxes, the Company used an estimated annual effective tax rate, which is based on expected income before taxes, statutory tax rates and tax planning opportunities available in the various jurisdictions in which the Company operates. Certain significant or unusual items are separately recognized in the period in which they occur and can be a source of variability in the effective tax rate from quarter to quarter. The Company recorded provision for income taxes of $3.9 million and $1.7 million in the three months ended September 30, 2022 and 2021, respectively. The effective tax rate was 42.1% and 12.5% for the three months ended September 30, 2022 and 2021, respectively. Nondeductible earn-out consideration of $4.9 million increased the effective tax rate for the three months ended September 30, 2022 by $1.5 million, or 15.9%. The Company recorded provision for (benefit from) income taxes of $12.3 million and $(1.8) million in the nine months ended September 30, 2022 and 2021, respectively. The effective tax rate was 33.2% and 2.3% for the nine months ended September 30, 2022 and 2021, respectively. The difference between the effective tax rates and the 21% federal statutory rate in the nine months ended September 30, 2022 was primarily due to global intangible low-taxed income (“GILTI”) inclusion, tax benefits of income tax holidays in foreign jurisdiction, nondeductible earn-out consideration and nondeductible compensation of officers. The difference between the effective tax rate and the 21% federal statutory rate in the nine months ended September 30, 2021 was primarily due to GILTI inclusion, tax benefits of income tax holidays in foreign jurisdiction, nondeductible transaction costs and nondeductible compensation of officers. The Company is subject to income tax in the United States federal, state and various foreign jurisdictions. As of September 30, 2022, the tax years 2018 to 2021 are subject to examination by tax authorities. The Company’s practice and intention are to indefinitely reinvest the earnings of its non-U.S. subsidiaries. Determination of the amount of any unrecognized deferred income tax liability on the temporary difference is not practicable because of the complexities of the hypothetical calculation.
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