Income taxes |
9 Months Ended |
|---|---|
Sep. 30, 2024 | |
| Income Tax Disclosure [Abstract] | |
| Income taxes | Income taxes At the end of each interim period, the Company estimates the annual expected effective income tax rate and applies that rate to its ordinary year-to-date earnings or loss. The income tax provision or benefit related to significant, unusual, or extraordinary items, if applicable, that will be separately reported or reported net of their related tax effects are individually computed and recognized in the interim period in which they occur. In addition, the effect of changes in enacted tax laws or rates, tax status, judgment on the realizability of a beginning-of-the-year deferred tax asset in future years or unrecognized tax benefits is recognized in the interim period in which the change occurs. The computation of the annual expected effective income tax rate at each interim period requires certain estimates and assumptions including, but not limited to, the expected pre-tax income (or loss) for the year, projections of the proportion of income (and/or loss) earned and taxed in foreign jurisdictions, permanent and temporary differences, and the likelihood of the realization of deferred tax assets generated in the current year. The accounting estimates used to compute the provision or benefit for income taxes may change as new events occur, more experience is acquired, additional information is obtained or the Company’s tax environment changes. To the extent that the expected annual effective income tax rate changes during a quarter, the effect of the change on prior quarters is included in income tax provision in the quarter in which the change occurs. For the three months ended September 30, 2024 and 2023, the Company recorded an income tax provision of $2,773 and $19,841, respectively. The Company’s effective tax rate for the three months ended September 30, 2024 and 2023 was 14.7% and 325.7%, respectively. The Company's effective tax rate for the three months ended September 30, 2024 is lower than for the respective three months ended September 30, 2023, primarily due to non-deductible stock-based compensation, tax credits and other permanent tax differences and discrete items. For the nine months ended September 30, 2024 and 2023, the Company recorded an income tax provision of $7,562 and income tax benefit of $6,240, respectively. The Company’s effective tax rate for the nine months ended September 30, 2024 and 2023 was 25.1% and 68.1%, respectively. The Company's effective tax rate for the nine months ended September 30, 2024 is lower than the nine months ended September 30, 2023, primarily due to non-deductible executive compensation, tax credits and other permanent tax differences and discrete items. The Company recognizes interest and, if applicable, penalties related to unrecognized tax benefits in the income tax provision. The Company is under examination in various states for the 2021 tax year. We believe that we have made adequate provision for all income tax uncertainties that could result from the examination.
|