Income Taxes |
6 Months Ended |
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Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes For the three months ended June 30, 2026 and 2025, we recorded income tax expense of $6.0 million and $5.0 million, respectively, resulting in an effective tax rate of 77.2% and 1215.9%, respectively. The decrease in the effective tax rate for the three months ended June 30, 2026 compared to the same period in 2025 was primarily due to decreases in income taxes on income outside of the United States and the amount of unbenefited loss in the United States. For the six months ended June 30, 2026 and 2025, we recorded income tax expense of $10.4 million and $8.4 million, respectively, resulting in an effective tax rate of 99.3% and (239.8)%, respectively. The increase in effective tax rate for the six months ended June 30, 2026 compared to the same period in 2025 was primarily due to a decrease in the amount of unbenefited loss in the United States and an increase in income taxes on income outside of the United States. On July 4, 2025, the President signed into law H.R. 1, the “One Big Beautiful Bill Act” (“OBBBA”). Key income tax-related provisions of the OBBBA include the repeal of mandatory capitalization of domestic research and development expenditures under Internal Revenue Code (IRC) Section 174, extension of bonus depreciation, the restoration of an EBITDA-based interest limitation deduction, and revisions to international tax regimes. The overall financial statement impact of the OBBBA is not material. Our policy is to include interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of June 30, 2026, we did not have any accrued interest and penalties related to unrecognized tax benefits. In 2021, the Organization for Economic Co-operation and Development ("OECD") released model rules for a global minimum tax known as Pillar Two. Under such rules, a minimum effective tax rate of 15% would apply to multinational companies with consolidated revenues above €750 million. Although we operate in one or more jurisdictions that have substantively enacted Pillar Two legislation, we have not exceeded the revenue threshold of €750 million, and as such, we do not expect to be subject to the Pillar Two rules in 2026. We file U.S., state and foreign income tax returns in jurisdictions with varying statutes of limitations. The 2021 through 2025 tax years generally remain open and subject to examination by federal, state and foreign tax authorities. We are currently under examination by the IRS for the tax years 2013 through the period ending February 2016. A Form 870-AD was signed with the Internal Revenue Service on January 22, 2025 related to tax years 2013 through the period ending February 2016. During the three months ended March 31, 2021, we finalized a settlement agreement with the IRS for the tax years 2011 to 2012. We are currently under audit by the Massachusetts Department of Revenue for the 2015 through February 2016 tax years, and the Texas Comptroller for the 2015 through 2018 tax years. We are currently under audit by the Canada Revenue Agency (“CRA”) for the tax years 2021 and 2022.
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