Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The Company uses the estimated annual effective tax rate method for calculating its tax provision in interim periods, which represents the Company's best estimate of the effective tax rate expected for the full year. The Company’s effective tax rates were 20.0% and 21.1% for the three months ended June 30, 2026 and 2025, respectively and 20.2% and 21.1% for the six months ended June 30, 2026 and 2025, respectively. The effective tax rates differed from the federal statutory rate of 21.0% primarily due to non-taxable income attributable to pass-through investments, partially offset by non-deductible expenses. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into law. Among other provisions, the OBBBA modifies the timing of deductions for depreciation and certain other capitalized costs for tax purposes. The Company evaluated the provisions of the OBBBA and determined that, while the changes will affect the timing of certain tax deductions, the overall impact of the legislation is not material to the Company’s condensed consolidated financial statements. Tax Allocation Agreement The Company is included in ZFSG’s consolidated Federal income tax return and in various combined state income tax returns. The Company entered into a Tax Allocation Agreement with ZFSG (the “Tax Agreement”) which governs the allocation of consolidated tax liability among the parties to the agreement, the reimbursement of ZFSG for payments of such liabilities, the compensation of affiliated companies of ZFSG for the use of its tax attributes and the allocation of refunds or subsequent adjustments to tax liabilities. Under the Tax Agreement, the Company paid to ZFSG $20.1 million and $22.1 million in the three and six months ended June 30, 2026, respectively, and $9.0 million in both three and six months ended June 30, 2025. As of June 30, 2026 and December 31, 2025, $1.3 million and $8.1 million, respectively, were due to ZFSG under the Tax Agreement and were included in income tax payable in the condensed consolidated balance sheets.
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