| Schedule of Income Tax Expense and Effective Tax Rate |
The following table summarizes the Company’s income tax expense and effective tax rate for the periods presented:
| | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | | 2025 | | 2024 | | 2025 | | 2024 | | | | | | | | | | (in thousands) | Income before provision for income taxes | $38,904 | | $36,507 | | $59,231 | | $68,453 | Provision for income taxes | $54,720 | | $47,200 | | $107,184 | | $102,635 | | Effective tax rate | 141% | | 129% | | 181% | | 150% |
|
| Schedule of Unrecognized Tax Benefits Roll Forward |
A reconciliation of the beginning and ending amount of unrecognized tax benefits for the period presented:
| | | | | | | | | | | | | June 30, 2025 | | Three Months Ended | | Six Months Ended | | | | | | (in thousands) | | Balance, beginning of period | $ | 707,717 | | | $ | 674,668 | | | Reductions based on tax positions related to the prior year | (3,683) | | | (3,683) | | | | | | | Additions based on tax positions related to the current year | 33,809 | | | 66,201 | | | Additions based on tax positions related to the prior years | 4,806 | | | 5,463 | | | | | | | Balance, end of period | $ | 742,649 | | | $ | 742,649 | |
A reconciliation of the beginning and ending amount of uncertain tax position liabilities, net for the period presented:
| | | | | | | | | | | | | June 30, 2025 | | Three Months Ended | | Six Months Ended | | | | | | (in thousands) | | Balance, beginning of period | $ | 500,934 | | | $ | 445,221 | | | | | | | Reductions based on tax positions related to the prior year | (6,107) | | | (6,107) | | | Additions based on tax positions related to the current year | 34,133 | | | 69,255 | | | Additions based on tax positions related to the prior year | 4,806 | | | 5,463 | | | | | | | | | | | Reclass tax payments on deposit | 13,331 | | | 24,288 | | Interest recorded in income tax expense, net of reversals (1) | 12,568 | | | 21,545 | | | | | | Balance, end of period (2) (3) | $ | 559,665 | | | $ | 559,665 | |
| | | | | | | | (1) Amounts represent the interest recorded on uncertain tax positions during the respective years which are recorded in the provision for income taxes on the condensed consolidated statements of operations. | (2) The Company has taken a position that IRC Section 280E does not preclude it from deducting ordinary and necessary business expenditures on its tax returns. Of the $559.7 million in uncertain tax position liabilities, net, $524.2 million is related to this tax position. The amount does not include $96.8 million of previous tax payments for which the Company has claimed overpayment related to this tax position. | | (3) The ending balance includes accrued interest and penalties totaling $53.5 million as of June 30, 2025. |
|