Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | 8. Income Taxes Income taxes were $29.8 million and $7.5 million for the three months ended June 30, 2025 and 2024, respectively, and $50.2 million and $17.2 million for the six months ended June 30, 2025 and 2024, respectively. The effective income tax rate was 37.7% and 61.5% for the three months ended June 30, 2025 and 2024, respectively, and 33.5% and 37.2% for the six months ended June 30, 2025 and 2024, respectively. The decrease in the effective tax rate for the three months ended June 30, 2025, as compared to the same period in 2024, was primarily due to changes in the geographic mix of the Company’s income and a decrease in tax expense from discrete events. The decrease in the effective tax rate for the six months ended June 30, 2025, as compared to the same period in 2024, was primarily due to changes in the geographic mix of the Company’s income, partially offset by a decrease in tax benefits from discrete events. As of June 30, 2025, the total amount of unrecognized tax benefits, including related interest and penalties, was $50.6 million. If the total amount of unrecognized tax benefits was recognized, $36.7 million of unrecognized tax benefits, $9.2 million of interest, and $1.3 million of penalties would impact the effective tax rate. The Company believes that it is reasonably possible that the amount of unrecognized tax benefits could decrease by up to approximately $8.4 million within the next twelve months. Of this possible decrease, $7.5 million would be due to the expiration of statute of limitations in various jurisdictions. The remaining possible decrease of $0.9 million would be due to the settlement of audits or resolution of administrative or judicial proceedings. On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act (“OBBBA”), which in part, increases the tax deductibility of interest and research expenses beginning in 2025. The international provisions of the tax bill, including the minimum tax on foreign earnings, export income, and foreign tax credits, become effective in 2026. Based on the Company’s preliminary analysis of the tax bill, the financial impact is not expected to be material to its consolidated financial statements. However, the Company continues to analyze the tax bill and the potential full impact that the OBBBA will have on its consolidated financial statements as its final analysis has not been completed. ASC 740, Income Taxes, requires entities to recognize the financial impact of new income tax legislation in the interim reporting period in which the legislation is enacted, which for the Company will be the third quarter ending September 30, 2025. |