Income Taxes

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

Our provision for income taxes as a percentage of pretax earnings is based on a current estimate of the annual effective income tax rate adjusted to reflect the impact of discrete items.

During the three and nine months ended September 30, 2024, our effective tax rate was 26.9% and 26.2%, respectively. During the three and nine months ended September 30, 2023, our effective tax rate was 26.7% and 26.3%, respectively. The rates for each of the three months ended September 30, 2024 and 2023 were unfavorably impacted by certain expenses not being deductible for income tax reporting purposes. The rates for each of the nine months ended September 30, 2024 and 2023 were favorably impacted by recognition of a windfall tax benefit from equity vesting.