v3.25.2
Income Tax Expense
 6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income Tax Expense

NOTE 12. INCOME TAX EXPENSE

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Earnings before income taxes

 

$

115.3

 

 

$

87.1

 

 

$

206.0

 

 

$

167.3

 

Income tax expense

 

 

27.5

 

 

 

21.2

 

 

 

49.1

 

 

 

41.5

 

Effective tax rate

 

 

23.9

%

 

 

24.3

%

 

 

23.8

%

 

 

24.8

%

The decrease in the effective tax rate for the second quarter and first six months of 2025, in comparison to the same periods in 2024, was primarily due to the benefit of federal investment tax credits.

It is reasonably possible that the amount of unrecognized tax benefits could significantly increase or decrease within the next twelve months. However, an estimate of the range of reasonably possible outcomes cannot be reliably made at this time. Changes to unrecognized tax benefits could result from the expiration of statutes of limitations, the completion of ongoing examinations, or other unforeseen circumstances.

On July 4, 2025, the U.S. federal government enacted the “One Big Beautiful Bill Act,” resulting in significant changes to the federal tax code, most notably the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act of 2017 and the restoration of favorable tax treatment for certain business provisions. We are currently evaluating the enacted legislation and refining its estimated impact on our results of operations, cash flows and financial condition, most notably a forecasted 2025 reduction in federal cash taxes.