INCOME TAXES

3 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The Company’s effective tax rate for the three-month period ended March 31, 2024 was 21.8 percent as compared to 21.4 percent for the three-month period ended March 31, 2023. The effective tax rate differs from the U.S. statutory rate of 21 percent primarily due to state taxes and foreign earnings taxed at rates higher than the U.S. statutory rate partially offset by the recognition of the U.S. foreign-derived intangible income (FDII) provisions and certain discrete events including excess tax benefits from share-based compensation..

The increase in the effective tax rate for the first quarter of 2024 compared to the comparable period in the prior year was primarily due to an increase in the rate on foreign earnings with the implementation of the European Union’s Pillar Two Directive.