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Income Taxes
 3 Months Ended
Mar. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes
11. Income Taxes

The Company’s effective tax rate may vary from the U.S. federal statutory tax rate due to the change in the mix of earnings in various state jurisdictions with different statutory rates, benefits related to tax credits, and the tax impact of non-deductible expenses, stock award activities and other permanent differences between income before income taxes and taxable income. The Company’s effective tax rate for the three months ended March 31, 2024 was 12.1%. The variance from the U.S. federal statutory tax rate of 21.0% for the three months ended March 31, 2024 was primarily due to the benefit related to tax credits, the tax impact of stock award activities, and the valuation allowance established on federal and state attributes. The Company’s effective tax rate for the three months ended March 31, 2023 was 14.4%. The variance from the U.S. federal statutory tax rate of 21.0% for the three months ended March 31, 2023 was primarily due to the benefit related to tax credits, the tax impact of stock award activities, and the valuation allowance established on state attributes.
The Company considered the realizability of the deferred tax assets and recorded a valuation allowance as necessary for the amount of deferred tax assets which are not more likely than not to be realized as of March 31, 2024.