Income Taxes

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company uses the asset and liability method for accounting for income taxes and updates its annual effective income tax rate on a quarterly basis. Under this method an estimated annual effective rate is applied to the Company’s year-to-date income excluding discrete items which are recorded when settled.

We are subject to U.S. federal and state income taxes as a corporation. The Company recorded income tax expense of $11.7 million and $6.9 million for the nine months ended September 30, 2024 and 2023, respectively. The tax expense was $4.1 million and $0.4 million for the three months ended September 30, 2024 and 2023, respectively. Our provisions for income taxes differ from amounts that would be provided by applying the U.S. federal statutory tax rate of 21% to pre-tax book income primarily due to (i) the portion of pre-tax net income that is attributable to our non-controlling interest holders which is not taxable to the Company; (ii) other permanent differences; and (iii) state income taxes.