Income Taxes |
6 Months Ended |
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Jun. 30, 2023 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The computation of the provision for (benefit from) income taxes for interim periods is determined by applying the estimated annual effective tax rate to year-to-date earnings from recurring operations and adjusting for discrete tax items recorded in the period. The Company's ability to estimate the geographic mix of earnings is impacted by the relatively high-growth nature of the business, fluctuations of business operations by country, and implementation of tax planning strategies. The Company recorded an income tax expense of $1.5 million and an income tax benefit of $0.2 million for the three months ended June 30, 2023 and 2022, respectively, and an income tax expense of $2.8 million and $0.2 million for the six months ended June 30, 2023 and 2022, respectively. The income tax expense of $1.5 million for the three months ended June 30, 2023 was primarily related to withholding taxes in the U.S. and income tax expense from profitable foreign jurisdictions. The income tax benefit of $0.2 million for the three months ended June 30, 2022 was primarily related to the partial release of the U.S. valuation allowance in connection with an acquisition, offset by withholding taxes in the U.S. and income tax expense from profitable foreign jurisdictions. The income tax expense of $2.8 million for the six months ended June 30, 2023 was primarily related to withholding taxes in the U.S. and income tax expense from profitable foreign jurisdictions. The income tax expense of $0.2 million for the six months ended June 30, 2022 was primarily related to withholding taxes in the U.S. and income tax expense from profitable foreign jurisdictions, offset by the partial release of the U.S. valuation allowance in connection with acquisitions. In determining the need for a valuation allowance, the Company weighs both positive and negative evidence in the various jurisdictions in which it operates to determine whether it is more likely than not that its deferred tax assets are realizable. A full valuation allowance has been established in the U.S. and U.K. and no deferred tax assets and related tax benefits have been recognized in the consolidated financial statements. There is no valuation allowance associated with any other foreign jurisdictions.
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