INCOME TAXES |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INCOME TAXES | INCOME TAXES The Company provides for income taxes at the end of each interim period based on the estimated effective tax rate (“ETR”) for the full fiscal year. Cumulative adjustments to the Company’s estimate are recorded in the interim period in which a change in the estimated annual ETR is determined. Under the provisions of the Internal Revenue Code of 1986, as amended, the Company may deduct earnings distributed to stockholders against the income generated by its real estate investment trust (“REIT”) operations. The Company continues to be subject to income taxes on the income of its domestic taxable REIT subsidiaries and income taxes in foreign jurisdictions where it conducts operations. The Company provides valuation allowances if, based on the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Management assesses the available evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. Valuation allowances may be reversed if, based on changes in facts and circumstances, the net deferred tax assets have been determined to be realizable. The increases in the income tax provision during the three and nine months ended September 30, 2026 were primarily attributable to increases in earnings in certain foreign jurisdictions in the current year periods and a benefit from the application of a tax law change in Germany in the prior-year periods. These increases were partially offset by (i) unrealized losses from equity securities in the United States during the three and nine months ended September 30, 2026 and (ii) taxes related to the sale of the Company’s fiber assets in South Africa and additions to reserves for uncertain tax positions, each during the prior-year periods. As of September 30, 2026 and December 31, 2025, the total unrecognized tax benefits that would impact the ETR, if recognized, were approximately $135.4 million and $128.6 million, respectively. The amount of unrecognized tax benefits during the three and nine months ended September 30, 2026 includes (i) additions to the Company’s existing tax positions of $4.9 million and $11.3 million, respectively (ii) reductions and additions due to foreign currency exchange rate fluctuations of $(1.4) million and $1.6 million, respectively, (iii) reductions of existing tax positions of $0.4 million and $2.5 million, respectively, (iv) reductions due to the expiration of statutes of limitations of $1.3 million and $1.6 million, respectively, and (v) reductions due to settlements of $0.6 million and $2.0 million, respectively. The Company recorded the following penalties and income tax-related interest expense during the three and nine months ended September 30, 2026 and 2025:
As of September 30, 2026 and December 31, 2025, the total amount of accrued income tax related interest and penalties included in the consolidated balance sheets were $108.0 million and $86.8 million, respectively.
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