Income Taxes

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The tax provision for interim periods is determined using the estimated annual effective consolidated tax rate, based on the current estimate of full-year earnings before taxes, adjusted for the impact of discrete quarterly items.

The provision for income taxes was $23.6 million and $21.2 million for the three months ended March 31, 2023 and 2022, respectively, and the effective tax rate was 14.9% and 11.3%, respectively. During the three months ended March 31, 2023 and 2022, we recorded a tax benefit of $11.6 million and $8.9 million, respectively, associated with stock-based compensation. The increase in the effective tax rate is primarily due to a shift in the geographic earnings mix and a $5.9 million tax benefit recorded as a result of a state tax valuation allowance reversal in the three months ended March 31, 2022 that was not repeated in 2023. This was offset by an increase in the tax benefit related to stock-based compensation for the three months ended March 31, 2023, as compared to the same period in 2022.