INCOME TAXES |
3 Months Ended |
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Mar. 31, 2026 | |
| INCOME TAXES | |
| INCOME TAXES | 12. INCOME TAXES The Company’s tax rate was 21.8% and 20.3% for the first quarter of 2026 and 2025, respectively. The change in the Company’s tax rate for the first quarter of 2026 compared to the first quarter of 2025 was driven primarily by the impact of discrete tax items and special (gains) and charges. Further information related to special (gains) and charges is included in Note 2, “Special (Gains) and Charges.” The Company recognized net tax expense related to discrete tax items of $4.4 million in the first quarter of 2026. This included a tax benefit of $12.0 million associated with share-based compensation excess tax benefits. The remaining net tax expense of $16.4 million was primarily due to prior year return adjustments, unrecognized tax benefits, and other changes in estimates. The Company recognized a net tax benefit related to discrete tax items of $0.5 million in the first quarter of 2025. This included $7.3 million associated with share-based compensation excess tax benefits. The remaining net expense of $6.8 million was from other tax adjustments including audit settlements, unrecognized tax benefits, and other changes in estimates. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and 2026. An estimate of the financial impact has been included in operating results as of March 31, 2026. OBBBA did not have a material impact to the Company’s income tax expense.
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