v3.24.2.u1
Income taxes
 6 Months Ended
Jun. 30, 2024
Income Tax Disclosure [Abstract]  
Income taxes Income taxes
The Company determines its tax provision for interim periods using an estimate of its annual effective tax rate adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if its estimated tax rate changes, the Company makes a cumulative adjustment.

The Company’s effective tax rate (“ETR”) was 24.9% for the three months ended June 30, 2024, up from 22.7% for the three months ended June 30, 2023. The increase in the Company’s ETR was primarily driven by lower tax deductions related to stock-based compensation and other discrete items in the three months ended June 30, 2024 compared to the three months ended June 30, 2023.

The Company’s ETR was 25.0% for the six months ended June 30, 2024, up from 23.0% for the six months ended June 30, 2023. The increase in the Company’s ETR in the six months ended June 30, 2024 was primarily driven by lower tax deductions related to stock-based compensation in the six months ended June 30, 2024 compared to the six months ended June 30, 2023.

The following table summarizes activities related to the Company’s unrecognized tax benefits for uncertain tax positions for the six months ended June 30, 2024:
    
Six months ended June 30, 2024
Opening balance at January 1$19,236 
Decrease related to prior year tax positions due to lapse of applicable statute of limitation(37)
Decrease related to settlements with taxing authorities(342)
Effect of exchange rate changes(77)
Closing balance at June 30$18,780 

As of December 31, 2023 and June 30, 2024, the Company had unrecognized tax benefits amounting to $19,236 and $18,780, respectively, which, if recognized, would impact the Company’s ETR.

As of December 31, 2023 and June 30, 2024, the Company had accrued $3,312 and $3,296, respectively, in interest and $499 and $500, respectively, for penalties relating to unrecognized tax benefits.
22. Income taxes (Continued)
During the year ended December 31, 2023 and the six months ended June 30, 2024, the Company recognized approximately $220 and $(105), respectively, in interest related to income taxes.