Note 7 - Income Taxes |
6 Months Ended | ||
|---|---|---|---|
Jun. 30, 2025 | |||
| Notes to Financial Statements | |||
| Income Tax Disclosure [Text Block] |
Our effective income tax rate was 26.9% for the three months ended June 30, 2025, compared to 26.8% for the three months ended June 30, 2024. Our effective income tax rate was 26.7% for the first six months of 2025, compared to 27.7% in 2024. In determining our quarterly provision for income taxes, we use an estimated annual effective tax rate, adjusted for discrete items. This rate is based on our expected annual income, statutory tax rates, best estimate of nontaxable and nondeductible items of income and expense, and the ultimate outcome of tax audits.
At June 30, 2025, we had a total of $81.2 million in gross unrecognized tax benefits, which are a component of other long-term liabilities on our Condensed Consolidated Balance Sheets. Of this amount, $66.0 million represents the amount of unrecognized tax benefits that, if recognized, would impact our effective tax rate. The total amount of accrued interest and penalties for such unrecognized tax benefits was $16.7 million at June 30, 2025.
On July 4, 2025, new U.S tax legislation was signed into law which makes permanent many of the tax provisions enacted in 2017 as part of the Tax Cuts and Jobs Act that were set to expire at the end of 2025. In addition, the legislation makes changes to certain U.S. corporate tax provisions. We are currently evaluating the impact of the new legislation; however, we do not expect it to have a material impact on our financial statements but anticipate an improvement in our cash tax position. |