Income Tax Expense

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Income Tax Expense

NOTE 11. INCOME TAX EXPENSE

	Three Months Ended
	March 31,
	2024			2023
Earnings before income taxes	$	80.2		$	63.9
Income tax expense		20.3			16.6
Effective tax rate		25.3	%		26.0	%

The effective tax rate for the first quarter of 2024 was lower compared to the same period in 2023 due primarily to an increase in our valuation allowance for capital loss carryforwards recorded in the first quarter of 2023.

It is reasonably possible that the amount of unrecognized tax benefits could significantly increase or decrease within the next twelve months. However, an estimate of the range of reasonably possible outcomes cannot be reliably made at this time. Changes to unrecognized tax benefits could result from the expiration of statutes of limitations, the completion of ongoing examinations, or other unforeseen circumstances.