INCOME TAXES |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INCOME TAXES | INCOME TAXES The Company provides for income taxes at the end of each interim period based on the estimated effective tax rate (“ETR”) for the full fiscal year. Cumulative adjustments to the Company’s estimate are recorded in the interim period in which a change in the estimated annual ETR is determined. Under the provisions of the Internal Revenue Code of 1986, as amended, the Company may deduct earnings distributed to stockholders against the income generated by its real estate investment trust (“REIT”) operations. The Company continues to be subject to income taxes on the income of its domestic taxable REIT subsidiaries and income taxes in foreign jurisdictions where it conducts operations. The Company provides valuation allowances if, based on the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Management assesses the available evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. Valuation allowances may be reversed if, based on changes in facts and circumstances, the net deferred tax assets have been determined to be realizable. The decrease in the income tax provision during the three months ended June 30, 2026 was primarily attributable to unrealized gains from equity securities in the United States and the accrual of taxes related to the anticipated repatriation of funds from certain foreign subsidiaries during the three months ended June 30, 2025, partially offset by an increase in earnings in certain foreign jurisdictions during the three months ended June 30, 2026. The increase in the income tax provision during the six months ended June 30, 2026 was primarily attributable to an increase in earnings in certain foreign jurisdictions, partially offset by unrealized gains from equity securities in the United States and taxes related to the sale of the Company’s fiber assets in South Africa (“South Africa Fiber”) during the six months ended June 30, 2025. As of June 30, 2026 and December 31, 2025, the total unrecognized tax benefits that would impact the ETR, if recognized, were approximately $134.2 million and $128.6 million, respectively. The amount of unrecognized tax benefits during the three and six months ended June 30, 2026 includes (i) additions to the Company’s existing tax positions of $4.8 million and $6.4 million, respectively, and (ii) additions due to foreign currency exchange rate fluctuations of $2.1 million and $3.0 million, respectively, and for both the three and six months ended June 30, 2026 (iii) reductions of existing tax positions of $2.1 million, (iv) reductions due to the expiration of statue of limitations of $0.3 million and (v) reductions due to settlements of $1.4 million. The Company recorded the following penalties and income tax-related interest expense during the three and six months ended June 30, 2026 and 2025:
As of June 30, 2026 and December 31, 2025, the total amount of accrued income tax related interest and penalties included in the consolidated balance sheets were $103.0 million and $86.8 million, respectively.
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