Quarterly report [Sections 13 or 15(d)]

Income Taxes

v3.25.1
Income Taxes
3 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes
7. INCOME TAXES
The Company files income tax returns in the U.S. federal and state jurisdictions, as well as in foreign jurisdictions. With certain exceptions, the Company is no longer subject to federal income tax examinations for years prior to 2021. The Company is no longer subject to state and local, or foreign, income tax examinations for years prior to 2017.
The Company made cash income tax payments, net of refunds, of $17 million and $2 million for the three months ended March 31, 2025 and 2024, respectively.
The Company’s effective tax rates were 22.8% and 27.3% during the three months ended March 31, 2025 and 2024, respectively. Such decrease was primarily a result of higher tax benefits associated with stock-based compensation and reduced withholding taxes on the Company’s international operations. The 2024 effective tax rate was higher due to non-recurring transaction-related expenses deducted at a lower tax rate.
Various jurisdictions in which the Company operates have enacted the Pillar II directive which establishes a global minimum corporate tax rate of 15% initiated by the Organization for Economic Co-operation and Development with an effective date of January 1, 2024. The Company does not expect Pillar II to have a material impact on its financial results, including its annual estimated effective tax rate or liquidity for 2025.