Income Taxes |
3 Months Ended |
|---|---|
Mar. 31, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | 12. Income Taxes Our income tax provision represents federal, state, and international taxes on our income recognized for financial statement purposes and includes the effects of temporary differences between financial statement income and income recognized for tax return purposes. Deferred tax assets and liabilities are recorded for temporary differences between the financial reporting basis and the tax basis of assets and liabilities. We record a valuation allowance to reduce our deferred tax assets to reflect the net deferred tax assets that we believe will be realized. In assessing the likelihood that we will be able to recover our deferred tax assets and the need for a valuation allowance, we consider all available evidence, both positive and negative, including historical levels of pre-tax book income, expiration of net operating losses, changes in our debt and equity structure, expectations and risks associated with estimates of future taxable income, ongoing prudent and feasible tax planning strategies, as well as current tax laws. As of March 31, 2025, we have a valuation allowance of $39.4 million against certain deferred tax assets consisting primarily of $27.7 million attributable to other deferred tax assets consisting largely of foreign intangible assets and $11.7 million attributable to state and foreign net operating loss carryovers. We recorded income tax expense of $4.2 million during the three months ended March 31, 2025, which included tax expense of $4.0 million attributable to current operations, $2.1 million attributable to state income taxes, $0.8 million attributable to Global Intangible Low Taxed Income, partially offset by $3.2 million of valuation allowance released. As a percentage of income before income taxes as compared to the three months ended March 31, 2024, income tax expense decreased due to a reduction in valuation allowances, and lower tax expense related to share-based compensation and the Global Intangible Low Taxed Income regime. The total amount of unrecognized tax benefits as of March 31, 2025, and December 31, 2024, was $2.9 million and $2.7 million, respectively. The $2.9 million represents the amount that, if recognized, would impact our effective income tax rate as of March 31, 2025. We adjust these reserves when facts and circumstances change, such as the closing of tax audits or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on our financial condition and operating results. We file income tax returns in the U.S. federal jurisdiction, various states, and foreign jurisdictions. With few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2020. |