Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | NOTE 13: INCOME TAXES For the three months ended June 30, 2025, the Company recorded an income tax benefit of $8.4 million compared to income tax expense of $3.0 million in the prior year. The income tax benefit for the three months ended June 30, 2025, and the income tax expense in the three months ended June 30, 2024, primarily represent taxes at federal and local statutory rates where the Company operates, adjusted for certain one-time items. For the six months ended June 30, 2025, the Company recorded an income tax benefit of $10.0 million compared to income tax expense of $0.9 million in the prior year. The income tax benefit for the six months ended June 30, 2025 and the income tax expense in the first six months of 2024 primarily represent taxes at federal and local statutory rates where the Company operates, adjusted for certain one-time items. The decrease in income tax in the first six months of 2025, compared to the first six months of 2024, is primarily a result of the decrease in actual and forecasted earnings between the two periods. As required by FASB ASC 740, "Income Taxes" ("ASC 740") the Company assesses the realizability of its deferred tax assets. The Company records a valuation allowance when, based upon the evaluation of all available evidence, it is more-likely-than-not that all or a portion of the deferred tax assets will not be realized. In making this determination, we analyze, among other things, our recent history of earnings, the nature and timing of reversing book-tax temporary differences, tax planning strategies, and future income. The Company maintains a valuation allowance on certain foreign and U.S. federal deferred tax assets until such time as in management’s judgment, considering all available positive and negative evidence, the Company determines that these deferred tax assets are more likely than not realizable. The valuation allowance is reviewed quarterly and will be maintained until sufficient positive evidence exists to support the reversal of some or all of the valuation allowance. The valuation allowance was $4.0 million at both June 30, 2025 and December 31, 2024. The Company accounts for uncertain income tax positions in accordance with ASC 740. We anticipate that certain statutes of limitation will close within the next twelve months resulting in the immaterial reduction of the reserve for uncertain tax benefits related to various intercompany transactions. The reserve for uncertain tax benefits decreased from $2.5 million as of December 31, 2024 to $1.7 million as of June 30, 2025 due to state tax settlements and related accrued interest. |