INCOME TAXES

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

In determining its interim provision for income taxes, the Company uses an estimated annual effective tax rate, which is based on expected annual profit before tax, statutory tax rates and tax planning opportunities available in the various jurisdictions in which the Company operates. Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability in the effective tax rates from quarter to quarter.

The Company’s worldwide effective tax rate for the three months ended June 30, 2024 and 2023 was 26.3% and 20.0%, respectively, and 16.5% and 19.8% during the six months ended June 30, 2024 and 2023, respectively. The Company recorded a tax shortfall upon vesting or exercise of stock awards of $0.1 million during the three months ended June 30, 2024. The Company’s effective tax rate benefited from excess tax benefits recorded upon vesting or exercise of stock awards of $7.4 million during the three months ended June 30, 2023 and $20.8 million and $13.4 million during the six months ended June 30, 2024 and 2023, respectively. Additionally, during the three and six months ended June 30, 2024, the Company’s effective tax rate benefited from the recognition of one-time benefits of $0.1 million and $2.3 million, respectively, resulting from the Company’s decision to change the tax status and to classify certain of its foreign subsidiaries as disregarded entities for U.S. income tax purposes. During the three months ended June 30, 2024, the Company recorded a tax expense of $1.2 million resulting from the recognition of a deferred tax liability associated with unremitted earnings of subsidiaries.