INCOME TAXES

3 Months Ended

Mar. 31, 2025

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The Company had income tax expense of $14.4 million and $15.2 million in the first quarters of 2025 and 2024, respectively. The Company’s effective tax rates were 22.5% and 27.4% for the first quarters of 2025 and 2024, respectively. The decrease in income tax expense in the first quarter of 2025 was due to a tax benefit in 2025 from stock appreciation on stock-based awards that settled in the quarter, partially offset by an increase in pre-tax income. The decrease in the effective income tax rate compared to the first quarter of 2024 was primarily attributable to a tax benefit from stock-based awards that settled in the first quarter of 2025.

The Organization for Economic Co-operation and Development enacted model rules for a new global minimum tax framework, also known as Pillar Two, and certain governments globally have enacted these rules effective January 1, 2024. The Company continues to assess the potential impacts of Pillar Two and does not expect it to have a material effect on the Company’s financial statements.