Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | 4. Income Taxes The Company’s effective tax rate for the six months ended June 30, 2025 was 22.4% compared to 26.0% for the six months ended June 30, 2024. The decrease is primarily attributable to higher excess tax benefits on stock compensation due to stock price appreciation, a reduction of interest expense due to the remeasurement of unrecognized tax benefits and additional state attributes generated from legal entity restructuring. As of June 30, 2025, the balance of unrecognized tax benefits, inclusive of interest and penalties, was $112.0 million, of which $102.0 million is included in “Accounts payable and accrued expenses” on the consolidated balance sheet, with the remaining $10.0 million recorded as a reduction to deferred tax assets. This balance consists of a temporary component of $102.3 million, for which there is an equal and offsetting deferred tax asset, and a permanent component of $9.7 million, which, if recognized, would favorably affect the effective tax rate in the period of recognition. The Company had $193.4 million of unrecognized tax benefits as of June 30, 2024. As of December 31, 2024, the Company had $104.2 million of unrecognized tax benefits, inclusive of interest and penalties, of which $82.5 million was included in “Accounts payable and accrued expenses” on the consolidated balance sheet. The remaining $21.7 million was recorded as a reduction to deferred tax assets. The balance of $104.2 million at December 31, 2024 included a permanent component of $7.2 million. In the three months ended September 30, 2024, the Company decreased the balance of the unrecognized tax benefits reserve due to management’s evaluation and remeasurement of its settlement position related to the timing of recognition of income and losses related to the Company's loan and finance receivable portfolio. Based on the expiration of the statute of limitations for certain jurisdictions, the Company believes it is reasonably possible that, within the next twelve months, unrecognized tax benefits could decrease by approximately $0.3 million. The Company believes that it has adequately accounted for any material tax uncertainties in its existing reserves for all open tax years. The Company’s U.S. tax returns are subject to examination by federal and state taxing authorities. The statute of limitations related to the Company’s consolidated Federal income tax returns is closed for all tax years up to and including 2020. The years open to examination by state, local and foreign government authorities vary by jurisdiction, but the statute of limitation is generally three years from the date the tax return is filed. For jurisdictions that have generated net operating losses, carryovers may be subject to the statute of limitations applicable for the year those carryovers are utilized. In these cases, the period for which the losses may be adjusted will extend to conform with the statute of limitations for the year in which the losses are utilized. In most circumstances, this is expected to increase the length of time that the applicable taxing authority may examine the carryovers by one year or longer, in limited cases. |