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INCOME TAXES
 9 Months Ended
Sep. 30, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Year-to-date income tax expense or benefit is the product of the most current projected annual effective tax rate (“PAETR”) and the actual year-to-date pretax income adjusted for any discrete items. The income tax expense or benefit for a particular quarter, is the difference between the year-to-date calculation of income tax expense or benefit and the year-to-date calculation for the prior year period. Items unrelated to current period ordinary income or loss are recognized entirely in the period identified as a discrete item of tax.
The Company’s PAETR differs from the U.S. federal statutory rate of 21.0% during the three and nine months ended September 30, 2024 and 2023 primarily due to the impact of maintaining a U.S. valuation allowance provided on U.S. deferred tax assets.
The Company’s income before taxes, income tax provision or benefit and effective tax rates were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(In thousands, except percentages)2024202320242023
Income before income taxes$25,389 $2,932 $79,954 $2,644 
Provision (benefit) for income taxes2,029 125 $5,287 $(1,306)
Effective tax rate8.0 %4.3 %6.6 %(49.4)%
For the three and nine months ended September 30, 2024, the Company recorded an income tax provision of $2,029 and $5,287, respectively. For the three and nine months ended September 30, 2023, the Company recorded an income tax provision of $125 and benefit of $1,306, respectively.
For both of the periods ended September 30, 2024 and September 30, 2023, the Company has recognized a year-to-date discrete tax benefit attributable to the excess tax benefits of stock-based compensation activity. However, in 2024, the tax expense from regular operating activities exceeded this benefit, resulting in a net year-to-date tax expense for the period.
The Company periodically evaluates the realizability of its net deferred tax assets based on all available evidence, both positive and negative. The realization of net deferred tax assets is dependent on the Company’s ability to generate sufficient future taxable income to fully utilize these assets. As of
September 30, 2024, the Company continues to maintain a full allowance against its U.S. federal and state net deferred tax assets.