XML 26 R16.htm IDEA: XBRL DOCUMENT v3.24.2.u1
INCOME TAXES
 6 Months Ended
Jun. 30, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The Company determines the tax provision for interim periods using an estimate of our annual effective tax rate ("ETR"), adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual ETR, and if our estimated tax rate changes, we make a cumulative adjustment. If a reliable estimate of the annual ETR cannot be made, the actual ETR for the year to date may be the best estimate of the annual ETR.

For the three months ended June 30, 2024, our effective tax rate decreased to 29.6% from 36.8% in the same period in 2023. This reduction was primarily driven by a decrease in the impact of state deferred taxes and the research and development (R&D) tax credit generated during the current quarter compared to the prior-year quarter.

Similarly, our effective tax rate for the six months ended June 30, 2024 decreased to 32.9% from 141.2% for the six months ended June 30, 2023. This improvement was largely due to the R&D tax credit, which provided an incremental benefit of 21.0% compared to the first six months of 2023. The significantly higher effective tax rate in the prior year was primarily driven by a disproportionate impact of tax credits and non-conforming state deferred taxes relative to the pretax loss.