Income Taxes |
3 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Lea & Eddy Holdings, LLC | |
| Effective Income Tax Rate Reconciliation [Line Items] | |
| Income Taxes | 8. Income Taxes We use an estimated annual effective tax rate for purposes of determining the income tax provision during interim reporting periods. In calculating our estimated annual effective tax rate, we consider forecasted annual pre-tax income and estimated permanent book versus tax differences. Adjustments to the effective tax rate and estimates could occur during the year as information and assumptions change which could include, but are not limited to, changes to the forecasted amounts, estimates of permanent book versus tax differences, and changes to tax laws and rates. The Company utilized a discrete effective tax rate method, as allowed by ASC 740 to calculate taxes for the three months ended March 31, 2026. The Company determined that small changes in estimated ordinary income would result in significant changes in the estimated annual effective tax rate (“AETR”), and therefore, the AETR method would not provide a reliable estimate. Our income tax expense for the three months ended March 31, 2026 was $0.2 million, resulting in an effective tax rate of 6.4 percent. For the three months ended March 31, 2025, there was an effective tax rate of zero percent. Effective tax rates differ from the U.S. federal statutory rate of 21.0 percent for the three months ended March 31, 2026 and 2025, primarily due to income attributable to nontaxable entities. |