INCOME TAXES |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| INCOME TAXES | |
| INCOME TAXES | 8. INCOME TAXES The Company determines its periodic income tax provision based upon the current period income and the annual estimated tax rate for the Company adjusted for discrete items including tax credits and changes to prior year estimates. The estimated tax rate is revised, if necessary, at the end of each successive interim period to the Company's current annual estimated tax rate. Income tax provision for three months ended June 30, 2025 reflects an effective tax rate of 21.3% compared to 15.7% for the comparable period in the prior year. Income tax provision for six months ended June 30, 2025 reflects an effective tax rate of 23.7% compared to 20.0% for the comparable period in the prior year. The increase in the effective tax rate is primarily due to detrimental discrete adjustments compared to beneficial discrete adjustments in the prior year. On July 4, 2025, the United States Congress passed budget reconciliation bill H.R.1 referred to as the One Big Beautiful Bill Act (“OBBBA”). The OBBBA contains several changes to corporate taxation including modifications to capitalization of research and development expenses, limitations on deductions for interest expense and accelerated depreciation on fixed asset additions. As the legislation was signed into law after the close of our second quarter, our operating results for the six months ended June 30, 2025, do not include any adjustments related to it. The Company is in the process of evaluating the OBBBA and has not estimated its financial impact at this time. |