Income Taxes

3 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

12. Income Taxes

At the end of each quarter, the Company makes an estimate of its annual effective income tax rate. The estimate used in the year-to-date period may change in subsequent periods.

During the three-month periods ended March 31, 2024 and March 31, 2023, the effective income tax rate was 37.9% and 554.9%, respectively. The 2024 effective tax rate decreased when compared to 2023, primarily due to the establishment of a valuation allowance against the Company’s deferred tax asset for its disallowed interest carryforward during the three months ended March 31, 2023.

The Company's effective income tax rate for the three-month period ended March 31, 2024 was higher than the federal statutory tax rate of 21% primarily due to an increase in the Company's U.S. valuation allowance and the tax on global intangible low-taxed income. The increase was partially offset by the deduction for foreign-derived intangible income, U.S. research and development credits and a decrease in the Company's foreign valuation allowance.