Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2023 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Note 16 - Income Taxes The Company’s provision for income taxes for the three and six months ended June 30, 2023 and June 30, 2022 was based on our projected annual effective tax rate for fiscal year 2023 and 2022, adjusted for specific items that are required to be recognized in the period in which they occur. The effective tax rate, inclusive of items specific to the period, for the six months ended June 30, 2023 and 2022 was 32.8% and 51.6% respectively. The Company recorded income tax expense of $16.6 million and $10.5 million for the three months ended June 30, 2023 and 2022, respectively. The Company recorded income tax expense of $40.3 million and $23.5 million for the six months ended June 30, 2023 and 2022, respectively. The Company’s projected 2023 annual effective tax rate, differed from the U.S federal statutory rate of 21.0% due to U.S. state taxes, foreign taxes, non-deductible equity compensation expense, offset by research and development credits. Further, the Company’s annual effective tax rate included period specific costs resulting from a U.S. tax inclusion in a prior year under the global intangible low-taxed income rules that was realized due to a favorable tax ruling issued by the Israeli tax authorities, and shortfalls in tax-deductible equity compensation compared to amounts recognized in our financial accounts. On August 16, 2022, the U.S. enacted the Inflation Reduction Act (“IRA”) of 2022, which, among other things, implemented a 15% minimum tax on book income of certain large corporations, a 1% excise tax on net stock repurchases, and several tax incentives to promote clean energy. We evaluated the provisions of the IRA and do not expect any material impact to our 2023 income tax provision. As of June 30, 2023, unrecognized tax benefits were $4.8 million, of which $3.8 million was a reduction of deferred tax assets and $1.0 million was included in Other long-term liabilities within our Consolidated Balance Sheets. If recognized, the resulting tax benefit would affect income tax expense by $4.8 million. It is not anticipated any of the unrecognized tax benefit will be recognized within the next twelve months.
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