INCOME TAX

3 Months Ended

Mar. 31, 2024

INCOME TAX

INCOME TAX

NOTE 3.    INCOME TAX

The following table summarizes tax expense and the effective tax rate for our income from continuing operations:

	Three Months Ended March 31,
	2024			2023
Income from continuing operations, before income tax	$	7,574		$	39,488
Income tax provision	$	1,787		$	7,736
Effective tax rate		23.6	%		19.6	%

Our effective tax rates differ from the U.S. federal statutory rate of 21% for the three months ended March 31, 2024 and 2023, primarily due to the benefit of earnings in foreign jurisdictions which are subject to lower tax rates, as well as tax credits, partially offset by net U.S. tax on foreign operations. The effective tax rate for 2024 was higher than the same periods in 2023 primarily due to unfavorable mix of earnings.

As of January 1, 2024, the Pillar II minimum global effective tax rate of 15% enacted by the Organization for Economic Cooperation and Development (“OECD”) was effectuated. More than 140 countries agreed to enact the Pillar II global minimum tax. However, the timing of the implementation for each country varies. To date, we have determined that there was an immaterial global minimum tax liability as a result of Pillar II, as certain tax jurisdictions either will not have Pillar II enacted until after December 31, 2024 or satisfied the safe harbor test to prevent any minimum tax under Pillar II. We continue to monitor the jurisdictions for any changes and include any appropriate minimum tax throughout the year.