Income taxes |
6 Months Ended | ||||||||||||
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Jun. 30, 2026 | |||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||
| Income taxes |
Our effective income tax rate for interim periods is based on the estimated annual effective tax rate, adjusted for discrete items occurring within the period. For the six months ended June 30, 2026, our effective income tax rate of 28.3% differed from the federal statutory tax rate of 21.0%, primarily due to state income taxes, non-deductible executive compensation expense, an increase in the deferred tax valuation allowance, and the tax impact of the surrender of COLI policies. These increases to our effective income tax rate were partially offset by a tax benefit related to employee share-based compensation. Our effective income tax rate of 28.3% for the six months ended June 30, 2026 was unchanged compared to the same period in 2025. The 2026 rate benefited from a higher tax benefit related to employee share-based compensation and lower foreign income taxes. These favorable impacts were offset by several factors, including a $2.3 million increase in the valuation allowance related to a capital loss carryforward generated during the period that we do not expect to fully utilize, as well as the tax impacts related to the surrender of COLI policies, higher non-deductible executive compensation expense, and state income taxes. For the second quarter of 2026, our effective income tax rate was 36.2%, an increase from 29.3% for the second quarter of 2025. The increase was primarily driven by the tax impact of the surrender of COLI policies during the second quarter of 2026 and higher non-deductible executive compensation expense.
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