INCOME TAXES |
6 Months Ended |
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Jun. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | The effective tax rate for the three months ended June 30, 2025 and 2024 was 26.1% and 27.4%, respectively. For the three months ended June 30, 2025 and 2024, the effective tax rate reflects discrete income tax benefits of $0.3 million and $0.7 million, respectively, resulting from the exercise and vesting of stock-based awards. These discrete income tax benefits reduced the effective tax rates in the respective periods by approximately 0.1 and 0.2 percentage points. The effective tax rate for the six months ended June 30, 2025 and 2024 was 25.0% and 25.4%, respectively. For the six months ended June 30, 2025 and 2024, the effective tax rates reflect discrete income tax benefits of $5.0 million and $8.5 million, respectively, resulting from the exercise and vesting of stock-based awards. These discrete income tax benefits reduced the effective tax rates in the respective periods by approximately 1.3 and 1.8 percentage points. During the first six months of 2025, the Company purchased $54.4 million of transferable clean energy tax credits. The Company used $53.3 million of these tax credits to reduce its 2024 U.S. federal income tax liability and $1.1 million to reduce its 2025 U.S. federal income tax liability. The Company has taken appropriate measures to mitigate the transferee liability associated with these tax credits, including but not limited to conducting due diligence to confirm the eligibility of the underlying projects or production, as applicable, for the tax credits and the eligibility of the tax credits for transfer, obtaining appropriate contractual protections from the sellers, and obtaining tax credit insurance. The effective tax rate, excluding discrete income tax benefits, differs from the federal statutory income tax rate due primarily to state income taxes, nondeductible expenses, and the tax impact of international operations. There have been no material adjustments to the Company's assessment of uncertain tax positions since December 31, 2024. On July 4, 2025, the U.S. enacted H.R. 1, commonly referred to as the One Big Beautiful Bill Act (“OBBBA”) into law. The OBBBA makes permanent certain expiring provisions of the 2017 Tax Cuts and Jobs Act (“TCJA”) and modifies other provisions of the TCJA and the Inflation Reduction Act. The OBBBA contains various effective dates with certain provisions effective in 2025 and others effective in 2026 and beyond. Accounting Standards Codification (“ASC”) 740, Income Taxes, requires the impact of changes in tax laws (or rates) to be recognized in the financial statements as of the date of enactment, which is when all legislative steps necessary for the bill to become law are complete. Consequently, there is no impact from the OBBBA reflected in our financial statements for the current period. We are currently evaluating the impact of the OBBBA tax law changes and will reflect the impact in future financial statements, which include the date of enactment. At this time, we do not expect the provisions of the OBBBA to materially impact the 2025 effective tax rate.
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