Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes In general, the Company is required to use an estimated annual effective rate to measure the tax benefit or tax expense recognized in an interim period. The estimated annual effective rate is revised on a quarterly basis. For the three and six months ended June 30, 2026, income tax benefit was $4.7 million on a loss from operations before income taxes of $24.4 million and $11.4 million on a loss from operations before income taxes of $48.3 million, respectively, representing an effective rate of 19% and 24%, respectively. Items resulting in variances from the federal statutory rate of 21% for the three and six months ended June 30, 2026 primarily consisted of state and local income tax expense, tax expense related to non-deductible compensation, and tax expense, including interest, related to an increase in uncertain tax positions, partially offset by a tax benefit from foreign operations and a tax benefit related to foreign-derived deduction eligible income. For the three and six months ended June 30, 2025, income tax expense was $16.1 million on income from operations before income taxes of $68.8 million, and $31.0 million on income from operations before income taxes of $105.9 million, respectively, representing an effective rate of 23% and 29%, respectively. The variance from the federal statutory rate of 21% for the three months ended June 30, 2025 primarily consisted of state and local income tax expense. Items resulting in variances from the federal statutory rate of 21% for the six months ended June 30, 2025 primarily consisted of state and local income tax expense, tax expense related to share-based compensation, tax expense for an increase in the valuation allowance for foreign taxes and tax expense related to non-deductible compensation. At June 30, 2026, the Company had foreign tax credit carryforwards of approximately $52.7 million, expiring on various dates from 2026 through 2036. These carryforwards have been reduced to zero by a valuation allowance of $52.7 million as it is more likely than not that these carryforwards will not be realized. As of June 30, 2026, the Company’s cash and cash equivalents balance of $464.0 million included approximately $136.5 million held by foreign subsidiaries. Of this amount, approximately $22.5 million is expected to be repatriated to the United States with the remaining amount continuing to be reinvested in foreign operations. Tax expense related to the expected repatriation amount has been accrued and the Company does not expect to incur any significant, additional taxes related to the remaining balance. As of June 30, 2026, the Pillar Two minimum tax requirement has not had, and is not expected to have, a material impact on the Company's results of operations or financial position for the year ending December 31, 2026.
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