Income tax provision |
6 Months Ended | ||||||||||||
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Jun. 30, 2025 | |||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||
| Income tax provision |
Our effective income tax rate for interim periods is based on the estimated annual effective tax rate, adjusted for discrete items occurring within the period. For the six months ended June 30, 2025, our effective income tax rate of 28.4% differed from the federal statutory tax rate of 21.0% mainly due to the impact of foreign income tax expense, including the impact of the repatriation of foreign earnings, as well as corporate state income taxes, the tax impact of non-deductible executive compensation expense, and the benefit of the federal R&D tax credit. For the six months ended June 30, 2025, our effective income tax rate decreased from 33.7% for the same period in 2024. The 2025 rate benefited from lower tax impacts for our foreign operations, non-deductible compensation, and share-based compensation. These benefits were partially offset by an increase in our effective state income tax rate. For the second quarter of 2025, our effective income tax rate was 29.2%, a decrease from 33.7% for the second quarter of 2024, with similar factors contributing to the reduction as those affecting the six-month period. In July 2025, the One Big Beautiful Bill Act, officially titled "An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14", was signed into law. The legislation is a comprehensive tax and spending bill that primarily extends provisions of the 2017 Tax Cuts and Jobs Act that were set to expire and introduces certain tax changes for businesses. Although we are currently evaluating the specific impacts of the legislation on our financial statements, our preliminary evaluation indicates that the impact to our income tax provision and deferred tax assets and liabilities will not be material to the consolidated financial statements.
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