Income Taxes |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | 4. Income Taxes The Company’s effective tax rate for the nine months ended September 30, 2026 was 23.3% compared to 24.1% for the nine months ended September 30, 2025. The decrease is primarily attributable to higher state income tax expense in the prior year period, including the impact of unfavorable state rate changes, that did not recur in the current period. The decrease is partially offset by a lower rate benefit from stock compensation and state tax attributes generated from legal entity restructuring in the prior year period. As of September 30, 2026, the balance of unrecognized tax benefits, inclusive of interest and penalties, was $154.0 million, of which $132.3 million is included in “Accounts payable and accrued expenses” on the consolidated balance sheet, with the remaining $21.7 million recorded as a reduction to deferred tax assets. This balance consists of a temporary component of $137.7 million, for which there is an equal and offsetting deferred tax asset, and a permanent component of $16.3 million, which, if recognized, would favorably affect the effective tax rate in the period of recognition. As of September 30, 2025, the balance of unrecognized tax benefits, inclusive of interest and penalties, was $117.9 million, of which $107.1 million was included in “Accounts payable and accrued expenses” on the consolidated balance sheet, with the remaining $10.8 million recorded as a reduction of deferred tax assets. The balance of $117.9 million included a permanent component of $11.6 million. As of December 31, 2025, the Company had $126.5 million of unrecognized tax benefits, inclusive of interest and penalties, of which $103.2 million was included in “Accounts payable and accrued expenses” on the consolidated balance sheet. The remaining $23.3 million was recorded as a reduction to deferred tax assets. The balance of $126.5 million at December 31, 2025 included a permanent component of $11.4 million. Based on the expiration of the statute of limitations for certain jurisdictions, the Company believes it is reasonably possible that, within the next twelve months, unrecognized tax benefits could decrease by approximately $1.2 million. The Company believes that it has adequately accounted for any material tax uncertainties in its existing reserves for all open tax years. The Company’s U.S. tax returns are subject to examination by federal and state taxing authorities. The statute of limitations related to the Company’s consolidated Federal income tax returns is closed for all tax years up to and including 2021. The years open to examination by state, local and foreign government authorities vary by jurisdiction, but the statute of limitation is generally three years from the date the tax return is filed. For jurisdictions that have generated net operating losses, carryovers may be subject to the statute of limitations applicable for the year those carryovers are utilized. In these cases, the period for which the losses may be adjusted will extend to conform with the statute of limitations for the year in which the losses are utilized. In most circumstances, this is expected to increase the length of time that the applicable taxing authority may examine the carryovers by one year or longer, in limited cases. |