Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Income Taxes | |
| Income Taxes | 9. Income Taxes Income tax expense (benefit) was approximately $(4.3) million and $13.0 million for the six months ended June 30, 2025 and 2024, respectively. For the three months ended June 30, 2025 and 2024, income tax expense (benefit) was approximately $(2.9) million and $6.9 million, respectively. The effective tax rate for the three months ended June 30, 2025 and 2024, was 16.4% and 27.3%, respectively. The effective tax rate for the six months ended June 30, 2025 and 2024, was 16.6% and 25.2%, respectively. The fluctuation in the tax rate for the six months ended June 30, 2025 and 2024, respectively, results primarily from the relationship of income (loss) before income tax for the three and six months ended June 30, 2025 and 2024, respectively. The effective tax rates for the three and six months ended June 30, 2025 and 2024, respectively, differs from the US federal statutory rate of 21% primarily due to the nonrecognition of tax benefits for loss jurisdictions, nondeductible meals and entertainment expenses, the impact of state tax expense based on gross receipts, and a compensation deduction limitation. The Company accounts for income taxes in interim periods under ASC 740-270, Income Taxes – Interim Reporting, which generally requires us to apply an estimated annual consolidated effective tax rate to consolidated pre-tax income. In addition, the guidance under ASC 740 further provides that, in establishing the estimated annual effective tax rate, the Company excludes losses from jurisdictions in which no tax benefit is expected to be recognized for such losses. On July 4, 2025, the United States Congress passed budget reconciliation bill H.R. 1 referred to as the One Big Beautiful Bill (“OBBB”). The OBBB contains several changes to corporate taxation including modifications to limitations on deductions for interest expense and accelerated tax deductions for qualified property. The Company is still in the process of evaluating the impact of the OBBB to our consolidated financial statements, but we do not expect any material income tax rate impact at this time. |