XML 29 R18.htm IDEA: XBRL DOCUMENT v3.24.3
Income Taxes
 9 Months Ended
Sep. 30, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Our income tax provision for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment.
During the three and nine months ended September 30, 2024, the Company recorded an income tax provision of $7.9 million and $14.9 million, respectively, resulting in an effective tax rate of 31.4% and 199.1%, respectively. These effective tax rates differ from the U.S. federal statutory rate primarily due to the impact of nondeductible items, including certain executive compensation costs, stock based compensation, and the tax expense related to uncertain tax positions; partially offset by the benefit of research and development tax credits. During the three and nine months ended September 30, 2023 the Company recorded an income tax benefit of $0.6 million and an income tax provision of $2.2 million, respectively, resulting in an effective tax rate of (7.8)% and 10.3%, respectively. These effective tax rates differ from the U.S. federal statutory rate primarily due to the effects of the valuation allowance and state and local taxes.
The Internal Revenue Service (IRS) is currently auditing our consolidated U.S. income tax return for 2021.