TAXES |
6 Months Ended |
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Jun. 30, 2026 | |
| TAXES | |
| INCOME TAXES | NOTE 7. TAXES The excess tax benefits and deficiencies are recognized as income tax expense (income tax benefit) in the Company’s Consolidated Statement of Income. This may result in increased volatility in the Company’s effective tax rate. For the six months ended June 30, 2026 and 2025, the Company’s effective tax rate was 19.7% and 23.1%, respectively. The effective tax rate for the six months ended June 30, 2026 and 2025 was impacted by excess tax benefit on stock option exercises, which were $2.9 million and $0.2 million, respectively. Deferred tax assets were evaluated by considering historical levels of income, estimates of future taxable income and the impact of tax planning strategies. As of June 30, 2026, we have recognized an uncertain tax position, inclusive of accrued interest, of $739 thousand, which is included in other long-term liabilities. The total amount of the unrecognized tax benefits that, if recognized, would affect the effective tax rate is $10 thousand. The uncertain tax position results from depreciation taken on property and equipment relating to the ongoing litigation with PCL Construction Services, Inc. No uncertain tax positions were recorded as of June 30, 2025. On July 4, 2025, the “One Big Beautiful Bill Act” (the “Act”) was enacted into law, making permanent certain key elements of the Tax Cuts and Jobs Act that are applicable to the Company, including 100% bonus depreciation. The Company is in the process of evaluating the impact of the Act to the Consolidated Financial Statements.
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