INCOME TAXES

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The Company records income tax expense during interim periods based on the best estimate of the full year’s tax rate as adjusted for discrete items, if any, that are taken into account in the relevant interim period. Each quarter, the Company updates its estimate of the annual effective tax rate and any change in the estimated rate is recorded on a cumulative basis.

The effective tax rate from continuing operations was 29.3% and 22.9% for the three months ended September 30, 2024 and 2023, respectively, and 29.3% and 27.7% for the nine months ended September 30, 2024 and 2023, respectively.

The higher effective tax rate for the three and nine months ended September 30, 2024 compared to the same periods in 2023 is primarily due to releases of penalties and interest associated with Section 199 positions in 2023.