Income Taxes |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes | Income Taxes Effective Tax Rates Our quarterly provision for income taxes is measured using an annual effective tax rate, adjusted for discrete items within the periods presented. Our effective tax rates are as follows:
Our effective tax rate for the three months ending June 30, 2025 is higher than the prior year’s comparable period primarily due to higher statutorily non-deductible costs and lower benefit related to share-based compensation, partially offset by lower non-U.S. taxes. Our effective tax rate for six months ending June 30, 2025 is higher than the prior year’s comparable period primarily due to higher statutorily non-deductible costs, partially offset by greater benefit related to share-based compensation. Our effective tax rate for the three months and six months ended June 30, 2025 is higher than the statutory U.S. federal tax rate of 21%, are primarily due to earnings in jurisdictions with statutory tax rates higher than the United States, expenses that are statutorily non-deductible for income tax purposes and the impact of U.S. state taxes, partially offset by excess share-based compensation benefits, tax credit utilization, and the statutory U.S. deduction related to our non-U.S. subsidiaries’ income. Unrecognized Tax Benefits During the three months and six months ended June 30, 2025, our gross unrecognized tax benefits, excluding interest and penalties, increased by $0.3 million, and $0.8 million, respectively, primarily due to increases in tax positions taken in the current and prior period, partially offset by reductions from the expiration of statutes of limitations. During the three months and six months ended June 30, 2025, the total amount of unrecognized tax benefits that, if recognized, would cause our effective tax rate to increase by $0.2 million and $0.9 million, respectively. The difference between these amounts relates to offsetting tax effects from other tax jurisdictions, and interest expense, net of deferred taxes. During the three months and six months ended June 30, 2025, we recognized $(0.1) million and $0.1 million, respectively, of interest (income)/expense related to unrecognized tax benefits in our Condensed Consolidated Statement of Operations. As of June 30, 2025 and December 31, 2024, the total amount of accrued interest and penalty expenses related to unrecognized tax benefits recorded in our Condensed Consolidated Balance Sheets was $2.9 million and $2.7 million, respectively. During the next twelve months, it is reasonably possible that our unrecognized tax benefits may decrease by $0.1 million due to expiration of statutes of limitations and settlements with tax authorities. However, if the ultimate resolution of income tax examinations results in amounts that differ from this estimate, we will record additional income tax expense or benefit in the period in which such matters are effectively settled.
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