Income Taxes

6 Months Ended

Jun. 30, 2024

Income Taxes [Abstract]

Income Taxes

4. INCOME TAXES

Our total provision for income taxes was $37.7 million and $74.5 million for the three and six months ended June 30, 2024, respectively. We record our income tax provision using a full-year forecasted methodology, including discrete items in the period in which they occur. Our year-to-date effective tax rate was 25.6% for the six months ended June 30, 2024 compared to 26.0% for the six months ended June 30, 2023.

In 2021, the Organization for Economic Cooperation and Development (“OECD”) introduced a framework, referred to as Pillar Two, creating a 15% global minimum effective tax rate for large multinational corporations. Effective January 1, 2024, Pillar Two legislation was enacted or substantively enacted in certain jurisdictions. The Company reviewed the Pillar Two effective rates in all jurisdictions in which the Company operates and confirmed that these rates were all above 15%. Consequently, the Company has concluded that there will be no “top-up” tax liability for 2024.

Our federal income tax returns for the tax years 2020 and forward are available for examination by the U.S. Internal Revenue Service (“IRS”).  The statute of limitations for the 2020 federal return will expire on October 15, 2024, unless extended by consent. Our state income tax returns for 2019 through 2023 remain subject to examination by various state authorities with the latest period closing on December 31, 2028.  We have not extended the statutes of limitations in any state jurisdictions with respect to years prior to 2019.