INCOME TAXES

3 Months Ended

Mar. 31, 2025

INCOME TAXES

INCOME TAXES

6.  INCOME TAXES

The Company generally determines its periodic income tax expense or benefit based upon the current period income or loss and the annual estimated tax rate for the Company adjusted for discrete items including changes to prior period estimates. In certain instances, the Company uses the discrete method when it believes the actual year-to-date effective rate provides a more reliable estimate of its income tax rate for the period. The estimated tax rate is revised, if necessary, at the end of each successive interim period to the Company’s current annual estimated tax rate.

For the three months ended March 31, 2025, the effective rate reflects a provision of 27.2 percent compared to a provision of 23.4 percent for the comparable period in the prior year. The increase in effective tax rate is primarily due to a stronger impact of detrimental permanent and discrete adjustments on a decreased pretax income.