Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

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Income Taxes
 6 Months Ended
Jun. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The following table includes the Company’s income (loss) before income tax provision, income tax provision and effective tax rate:
  Three Months Ended Six Months Ended
  June 30, June 30,
  2022 2021 2022 2021
(in thousands, except for effective tax rate)
Income (loss) before income tax provision (benefit) $ (30,101) $ 7,147  $ (42,789) $ 16,494 
Income tax provision (benefit) (5,833) 15,516  (3,813) 9,928 
Effective tax rate 19.4  % 217.1  % 8.9  % 60.2  %

Under ASC 740-270-25, the Company is required to report income tax expense by applying a projected annual effective tax rate ("AETR") to ordinary pre-tax book income for the interim period. The tax impact of discrete items is accounted for separately in the period in which they occur. The effective tax rate ("ETR") for the quarter is the result of the projected AETR applied to actual pre-tax book income plus discrete items as a percentage of actual pre-tax book income. Therefore, a change in pre-tax book income, either forecasted or actual year-to-date, from one period to the next will cause the ETR to change. For the three months and six months ended June 30, 2022 and 2021, the Company's ETR was impacted by the change in forecasted and actual year-to-date pre-tax book income.

For the three and six months ended June 30, 2022, the Company’s effective tax rate differed from the statutory rate primarily due to the increase in the valuation allowance the Company has placed on a portion of its U.S. deferred tax assets which includes the impact of IRC Section 174, permanent book-tax differences, the impact of state and local taxes offset by federal and state research and development ("R&D") credits and the partial reserve release of an uncertain tax position due to the expiration of a statute of limitations.

For the three and six months ended June 30, 2021, the Company's effective tax rate differed from the statutory rate primarily due to the increase in the valuation allowance the Company has placed on a portion of its U.S. deferred tax assets,
including the valuation allowance impact of the acquisition of Harvest Savings & Wealth Technologies in April 2021, permanent book-tax differences and the impact of state and local taxes offset by federal and state R&D credits.