Income Taxes |
3 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | 11. Income Taxes The Company’s effective tax rate was 19.8% and 18.8% for the three months ended March 31, 2026 and March 31, 2025, respectively. The increase in the effective tax rate was due primarily to decreases in the tax benefits related to foreign-derived deduction eligible income (FDDEI) and in the windfall equity-based compensation deductions partially offset by a change in jurisdictional mix of earnings. The difference between the effective tax rate and the statutory U.S. Federal income tax rate of 21% for the three months ended March 31, 2026 primarily relates to a discrete windfall tax benefit from equity-based compensation and the tax benefits related to untaxed income attributed to noncontrolling interests and earnings from lower tax jurisdictions, partially offset by state income taxes and foreign withholding taxes. As of March 31, 2026, the Company’s deferred tax assets were subject to a valuation allowance of $49.5 million primarily related to foreign net operating loss carryforwards, foreign tax credit carryforwards, and capital losses that the Company has determined are not more-likely-than-not to be realized. The factors used to assess the likelihood of realization include: the past performance of the entities, forecasts of future taxable income, future reversals of existing taxable temporary differences, and available tax planning strategies that could be implemented to realize the deferred tax assets. The ability or failure to achieve the forecasted taxable income in these entities could affect the ultimate realization of deferred tax assets. As of March 31, 2026 and December 31, 2025, the liability for income taxes associated with uncertain tax positions was $33.6 million and $32.4 million, respectively. Although the Company believes its reserves for its tax positions are reasonable, the final outcome of tax audits could be materially different, both favorably and unfavorably. Different non-US tax jurisdictions continue to enact legislation to adopt components of the Organization for Economic Co-operation and Development (OECD) Base Erosion and Profit Shifting (BEPS) Pillar Two Model Rules. In January 2026, the OECD issued further administrative guidance introducing a side-by-side framework under Pillar Two, largely exempting U.S.-headquartered companies from the application of Pillar Two, however, Pillar Two compliance and qualified domestic minimum top-up taxes (QDMTT) remain and will continue to apply. The OECD and implementing countries are expected to continue to make further revisions to their legislation and release additional guidance intended to adopt this side-by-side framework into law in each of the member countries. The Company has evaluated the impact of the enacted legislation to date and has determined there is no material impact to the Company’s income tax provision. We are continuing to evaluate the potential impact on future periods of the Pillar Two Framework, pending enactment of legislation by individual countries. |