Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The Company’s effective tax rates yielded a net expense of 31.7% and 78.1% for the three months ended June 30, 2025 and 2024, respectively, and a net expense of 24.3% and 46.6% for the six months ended June 30, 2025 and 2024, respectively. During the three and six months ended June 30, 2025, the net effect of discrete items increased the effective tax rate by 2.3% and decreased the effective tax rate by 4.7%, respectively. The discrete items for the three months ended June 30, 2025, primarily relate to shortfalls on equity award vestings, partially offset by a decrease in the valuation allowance. The discrete items for the six months ended June 30, 2025 primarily relate to a decrease in the valuation allowance, partially offset by shortfalls on equity award vestings. Excluding discrete items, the Company’s effective tax rate would have been 29.4% and 29.0% for the three and six months ended June 30, 2025, respectively. During the three and six months ended June 30, 2024, the net effect of discrete items increased the effective tax rate by 59.7% and 27.6%, respectively. The discrete items for the three and six months ended June 30, 2024 relate to shortfalls on equity award vestings and a one time charge of $6.3 million related to the reversal of a deferred tax asset resulting from the expiration of equity awards granted to the Company’s Founder and Executive Chairman. Excluding discrete items, the Company’s effective tax rate would have been 18.4% and 19.0% for the three and six months ended June 30, 2024, respectively. The Company has computed the provision for income taxes based on the estimated annual effective tax rate excluding a loss jurisdiction with no tax benefit and the application of discrete items, if any, in the applicable period. During the three and six months ended June 30, 2025, additions to unrecognized tax benefits recorded were not significant. During the three and six months ended 2024, additions to unrecognized tax benefits recorded by the Company were not significant. To the extent the remaining unrecognized tax benefits are ultimately recognized, the Company’s effective tax rate may be impacted in future periods. The Company recognizes interest expense and tax penalties related to unrecognized tax benefits in income tax expense in the Consolidated Statements of Operations. The Company’s accrual for interest and penalties related to unrecognized tax benefits was not significant for the three and six months ended June 30, 2025 and 2024. During the six months ended June 30, 2025 and 2024, the Company paid net cash taxes of $14.7 million and $12.6 million, respectively. On July 4, 2025, new tax legislation known as the “One Big Beautiful Bill Act”, or “OBBBA”, was signed into law. Management is currently evaluating the OBBBA and its impact on the Company’s financial position, operations and cash flows.
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