Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The Company's Provision for Income Taxes was $41,094 and $50,150 for the three and six months ended June 30, 2026, respectively, and $44,265 and $2,538 for the three and six months ended June 30, 2025, respectively. The effective tax rate was 27.8% and 10.5% for the three and six months ended June 30, 2026, respectively, and 29.3% and 1.0% for the three and six months ended June 30, 2025, respectively. The effective tax rate reflects the recognition of net excess tax benefits associated with appreciation in the Company's share price upon vesting of employee share-based awards above the original grant price of $91,422 and $74,954 for the six months ended June 30, 2026 and 2025, respectively, which resulted in a reduction in the effective tax rate of 19.1 and 28.5 percentage points for the six months ended June 30, 2026 and 2025, respectively. The effective tax rate for 2026 and 2025 also reflects the effect of certain nondeductible expenses, including expenses related to Class K-P Units, as well as the noncontrolling interest associated with LP Units and other adjustments. In October 2021, members of the Organization for Economic Co-operation and Development ("OECD") agreed on a two-pillar tax framework to realign international taxation with economic activities, including a coordinated set of rules designed to ensure large multinational enterprises pay a minimum 15% tax rate across all jurisdictions, known as Pillar Two. The U.S. has not yet adopted these rules, but several countries have enacted Pillar Two with an effective date beginning January 1, 2024. On January 5, 2026, the OECD announced the implementation of a side-by-side ("SbS") system, which allows U.S.-parented multinationals to be exempt from certain components of the global minimum tax due to having an eligible taxation system already in place under existing U.S. tax rules. The SbS system is effective for fiscal years beginning on or after January 1, 2026. The impact of Pillar Two on the Company's effective tax rate during the year was not material and it is not expected to materially impact the Company's effective tax rate in the future. Additionally, the Company is subject to the income tax effects associated with the global intangible low-taxed income ("GILTI") provisions in the period incurred. For the three and six months ended June 30, 2026 and 2025, no additional income tax expense associated with the GILTI provisions has been recognized and it is not expected to be material to the Company's effective tax rate for the year. On July 4, 2025, the United States enacted House Resolution 1 of the 119th Congress ("the Act"). The Act makes permanent key elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation, domestic research cost expensing, and beginning after December 31, 2025, updates for Net CFC Tested Income (formerly GILTI), which is not expected to materially impact the Company’s effective tax rate for the year. The Company recorded an increase in deferred tax assets of $45 associated with changes in Unrealized Gain (Loss) on Securities and Investments and an increase of $3,284 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss), for the six months ended June 30, 2026. The Company recorded an increase in deferred tax assets of $71 associated with changes in Unrealized Gain (Loss) on Securities and Investments and a decrease of $9,106 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss), for the six months ended June 30, 2025. The Company classifies interest relating to tax matters and tax penalties as a component of income tax expense in its Unaudited Condensed Consolidated Statements of Operations. As of June 30, 2026, there were $481 of unrecognized tax benefits that, if recognized, $387 would affect the effective tax rate. Related to the unrecognized tax benefits, the Company accrued interest and penalties of $179 and $48, respectively, during the three months ended June 30, 2026. In addition, during the quarter, the Company reached an audit settlement with the Tax Authorities and $126 of unrecognized tax benefits were recognized by the Company, of which $103 affected the effective tax rate. The Company also recognized a tax benefit for the accrued interest and penalties of $32 and $31, respectively, during the three months ended June 30, 2026, associated with the settlement.
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