INCOME TAXES

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

In determining its interim provision for income taxes, the Company uses an estimated annual effective tax rate, which is based on expected annual profit before tax, 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 quarter in which they occur and can be a source of variability in the effective tax rates from quarter to quarter.

The Company’s worldwide effective tax rates for the three months ended June 30, 2023 and 2022 were 20.0% and (114.9)%, respectively, and 19.8% and 5.8% during the six months ended June 30, 2023 and 2022, respectively. The Company’s effective tax rates benefited from excess tax benefits recorded upon vesting or exercise of stock-based awards of $7.4 million during each of the three months ended June 30, 2023 and 2022, respectively, and $13.4 million and $20.5 million during the six months ended June 30, 2023 and 2022, respectively. Additionally, during the three months ended June 30, 2022, the Company’s effective tax rate benefited from the recognition of one-time benefits of $7.2 million resulting from the Company’s decision to change the tax status and to classify certain of its foreign subsidiaries as disregarded entities for U.S. income tax purposes.