v3.23.2
Income Taxes
 6 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company computes its provision (benefit) for income taxes by applying the estimated annual effective tax rate to pretax income or loss and adjusts the provision for discrete tax items recorded in the period. The income tax expense, effective tax rates, and statutory federal income tax rates for the three and six months ended June 30, 2023 and June 30, 2022 were as follows (in thousands, except percentages):

Three Months Ended
June 30,		Six Months Ended
June 30,
2023202220232022
Income tax expense$5,812 $4,512 $9,442 $4,009 
Effective tax rate28.8 %25.6 %32.7 %15.7 %
Statutory federal income tax rate21 %21 %21 %21 %
The effective tax rate for the three and six months ended June 30, 2023 differed from the U.S. federal statutory tax rate of 21% primarily due to state taxes, tax detriments relating to the settlement of RSUs, certain non-deductible expenses, and limitations on the amount of deductible officer compensation, partially offset by the net tax benefits from research and development tax credits. The effective tax rate for the three and six months ended June 30, 2022 differed from the U.S. federal statutory tax rate of 21% primarily due to excess tax benefits relating to the exercise of non-qualified stock options and settlement of RSUs and from the tax benefits from research and development tax credits, partially offset by state taxes, non-deductible expenses including certain stock-based compensation expenses, and limitations on the amount of deductible officer compensation.
During the three and six months ended June 30, 2023, the Company continued to record reserves for the current year uncertain tax positions recognized within the effective tax rate. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months.