Income Taxes

3 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

A reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate is as follows:

	For the Three Months Ended  March 31,
	2024		2023
U.S. federal statutory income tax rate	21.0	%	21.0	%
State and local income taxes	3.7	%	3.2	%
Non-deductible executive compensation expense	1.3	%	1.4	%
Excess tax benefits from stock-based compensation	-0.6	%	-4.2	%
Other	0.2	%	0.1	%
Effective income tax rate	25.6	%	21.5	%

Excess tax benefits from stock-based compensation

We recognize an excess tax benefit or tax deficiency when the deduction for the stock-based compensation expense of a stock award for tax purposes differs from the cumulative stock-based compensation expense recognized in the financial statements. The excess tax benefit or tax deficiency is recognized in provision for income taxes in the period in which the amount of the deduction is determined, which is when restricted stock units are settled in common stock or stock options are exercised. Excess tax benefits reduce our effective income tax rate, while tax deficiencies increase our effective income tax rate. The impact of excess tax benefits on our effective income tax rate for the three months ended March 31, 2024 decreased from the same period in 2023 primarily due to a decrease in the number of restricted stock units that were settled in common stock during the first quarter of 2023 due to the timing of long-term stock award grants.