Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes For the three months ended June 30, 2026, the Company recorded an income tax provision of $4.5 million, reflecting a 30.0% effective tax rate, compared to $5.8 million for the three months ended June 30, 2025, reflecting a 25.7% effective tax rate. The income tax expense for the three months ended June 30, 2026 was lower compared to the same period in 2025 primarily due to lower pretax book income and changes in the relative weighting of jurisdictional income and loss. For the six months ended June 30, 2026, the Company recorded income tax expense of $6.0 million, reflecting a 33.7% effective tax rate, compared to $11.2 million for the six months ended June 30, 2025, reflecting a 26.5% effective tax rate. The income tax expense for the six months ended June 30, 2026 was lower compared to the same period in 2025 primarily due to lower pretax book income and changes in the relative weighting of jurisdictional income and loss. The Company's recorded liability for uncertain tax positions was $14.7 million and $14.1 million as of June 30, 2026 and December 31, 2025, respectively. The increase is the result of $0.6 million of incremental reserves associated with a research and development credit generated during 2026. The Company regularly assesses the likelihood of an adverse outcome resulting from examinations to determine the adequacy of its tax reserves. The Company is currently under examination by the U.S. Internal Revenue Service ("IRS") for tax year 2023. In addition, certain matters from prior IRS examinations involving tax years 2014 and 2016 through 2019 remain under consideration by the IRS Office of Appeals. The Company is also subject to various state and foreign tax examinations. As of June 30, 2026, the Company believes that it is more likely than not that the tax positions it has taken will be sustained upon the resolution of its audits, resulting in no material impact on its consolidated financial position, results of operations and cash flows. However, the final determination with respect to any tax audits, and any related litigation, could be materially different from the Company's estimates and/or from its historical income tax provisions and accruals and could have a material effect on operating results and/or cash flows in the periods for which that determination is made. In addition, future period earnings may be adversely impacted by litigation costs, settlements, penalties and/or interest assessments.
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