Income Taxes

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Note 15 – Income Taxes

Income Tax Expense

The 18.1% effective tax rate for the three months ended June 30, 2024 was lower than the 19.9% rate for the three months ended June 30, 2023, primarily as a result of decreases in state taxes following a favorable state audit resolution. The 31.5% effective tax rate for the six months ended June 30, 2024 was higher than the 19.2% rate for the six months ended June 30, 2023 largely driven by an increase for a valuation allowance relative to the impairment of equity securities, partially offset by decreases in state taxes and a decrease relative to the businesses held for sale.

As of June 30, 2024, we had approximately $689 million in deferred tax assets ("DTAs") associated with the impairment of equity securities, as well as unrealized investment losses that are partially recorded in Accumulated other comprehensive loss. A valuation allowance of $422 million, established in the six months ended June 30, 2024, drove the higher effective tax rate and was almost entirely related to the impairment of equity securities discussed in Note 11. For the remainder of the DTAs, we have determined that a valuation allowance is not currently required based on the Company's ability to carry back losses and our ability and intent to hold certain securities until recovery. We continue to monitor and evaluate the need for any additional valuation allowance.