INCOME TAXES

9 Months Ended

Sep. 30, 2023

INCOME TAXES

INCOME TAXES

16.  INCOME TAXES

The Company generally determines its periodic income tax expense or benefit based upon the current period income or loss and the annual estimated tax rate for the Company adjusted for discrete items including changes to prior period estimates. In certain instances, the Company uses the discrete method when it believes the actual year-to-date effective rate provides a more reliable estimate of its income tax rate for the period. The estimated tax rate is revised, if necessary, as of the end of each successive interim period during the fiscal year to the Company’s current annual estimated tax rate.

For the three months ended September 30, 2023, the effective rate reflects a provision of 26.3 percent compared to a provision of 24.9 percent for the comparable period in the prior year. For the nine months ended September 30, 2023, the effective rate reflects a provision of 24.0 percent compared to a provision of 25.4 percent for the comparable period in the prior year. The increase in the quarterly effective tax rate is primarily due to a decrease in pretax income and unfavorable discrete adjustments.