Income taxes |
3 Months Ended |
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Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income taxes | Income taxes The Company’s quarterly tax provision is based upon an estimated annual effective tax rate as adjusted for any discrete items. The Company’s income tax provision was $27.7 million and $17.8 million for the three months ended June 30, 2026 and June 30, 2025, respectively, with an effective tax rate of 29.4% and 34.8% for the three months ended June 30, 2026 and June 30, 2025, respectively. The effective tax rate for the three months ended June 30, 2026 differs from the US statutory tax rate primarily due to state and local income taxes, and discrete tax impacts related to stock-based compensation and limitations on certain deductible compensation. The effective tax rate for the three months ended June 30, 2025 differs from the US statutory tax rate primarily due to the executive compensation limitation partially offset by a discrete tax benefit related to stock-based compensation. The Company has completed its assessment of the One Big Beautiful Bill Act (“OBBBA”) corporate tax provisions which was enacted on July 4, 2025. The legislation includes several changes to US federal tax law, including the permanent extension of certain expiring Tax Cuts and Jobs Act provisions and modifications to the US taxation of foreign activity. Certain provisions were effective for 2025, while others apply to tax years beginning after December 31, 2025. The Company has evaluated the impact of the OBBBA and incorporated the applicable provisions into its consolidated financial statements for the current reporting period. As part of its assessment of the corporate tax provisions, the Company has incorporated the modifications to the US taxation of foreign activity with no material impact to the Company’s effective tax rate. The Organization for Economic Co-operation and Development (OECD) has a framework to implement a global minimum corporate tax of 15% for companies with global revenues and profits above certain thresholds (referred to as Pillar 2), with rules that became effective in 2024 and expanded in 2025. Some jurisdictions in which the Company operates have enacted Pillar 2 legislation, while others continue to advance implementation. The U.S. has not adopted the rules. On January 5, 2026, the OECD/G20 released the Side by Side (SbS) package, which provides administrative simplifications and new safe harbors, including exemptions from foreign income inclusion and undertaxed profits rules for qualifying US-parented groups and an extension of the Transitional Country-by-Country Reporting Safe Harbor through 2027. The Company is monitoring these developments and evaluating potential impacts. Based on current information, the Company has considered Pillar 2 tax within the provision for income taxes and does not expect Pillar 2 to have a material effect on its effective tax rate or consolidated financial statements.
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