Income Taxes

3 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

9. Income Taxes:

As of March 31, 2024, we had approximately $4.3 million in total gross unrecognized tax benefits. If recognized, $4.3 million would be recorded through the Consolidated Statements of Operations.

Our effective tax rate was 19.4% for the three months ended March 31, 2024 compared to 21.7% for the three months ended March 31, 2023. The decrease in the rate is primarily due to a discrete favorable adjustment for excess tax benefits in 2024 and unfavorable adjustments in 2023 related to discrete return to provision adjustments.

We are currently under a limited scope audit by the Internal Revenue Service for our 2021 and 2022 tax years. There are also ongoing U.S. state and local audits and other foreign audits covering fiscal years 2017 through 2023. We are generally no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by taxing authorities for years prior to 2017.