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Income Taxes
 6 Months Ended
Jun. 30, 2024
Income Tax Disclosure [Abstract]  
Income Taxes

12. Income Taxes

The Company’s effective tax rates on pre-tax income were 14.7% and 18.6% for the three months ended June 30, 2024 and 2023, respectively, and 15.4% and 17.4% for the six months ended June 30, 2024 and 2023, respectively. The decrease in the Company's effective tax rates for the three and six months ended June 30, 2024 compared to the

corresponding periods in the prior year was primarily due to a reduction in domestic income before income taxes and discrete tax benefits in the current periods.

 

Unrecognized tax benefits are reflected in Income taxes payable in the Condensed Consolidated Balance Sheets. The total amount of unrecognized tax benefits as of June 30, 2024 and December 31, 2023 was $311.4 million and $309.7 million, respectively, including interest and penalties. It is reasonably possible that the Company’s total unrecognized tax benefits could decrease by up to approximately $250 million during the next 12 months in connection with various matters which may be resolved and impact the effective tax rate.

 

The Company’s tax filings are subject to examination by U.S. federal, state, and various non-United States jurisdictions. The conclusion of the examination of the Company’s consolidated federal income tax returns for 2017 and 2018 resulted in both agreed and unagreed adjustments. The agreed adjustments have been reflected in the Company’s financial statements. The Company is contesting the unagreed adjustments at the IRS Appeals level and believes its reserves for these unagreed adjustments are adequate. The statute of limitations for the U.S. federal returns for 2017 and 2018 has been extended to March 31, 2025. The Company’s U.S. federal income tax returns since 2020 are also eligible to be examined.