Income Taxes |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The Company is subject to income tax in multiple jurisdictions and the use of estimates is required to determine the provision for income taxes. For the three months ended September 30, 2026 and 2025, the Company recorded an income tax provision of $4.4 million and $3.0 million, respectively. For the nine months ended September 30, 2026 and 2025, the Company recorded an income tax provision of $11.1 million and $7.7 million, respectively. The income tax provision is based on the estimated annual effective tax rate for the year applied to pre-tax income. The effective income tax rate for the three months ended September 30, 2026 was 27.4 percent compared to 29.6 percent in the same period of the prior year. The effective tax rate decreased by 2.2 percent for the three months ended September 30, 2026 when compared to the same period in 2025, primarily due to an operating rate catch-up credit driven by strong pre-tax income and an offset by reduced excess tax benefits on stock-based compensation. The effective income tax rate for the nine months ended September 30, 2026 was 27.7 percent compared to 33.5 percent in the same period of the prior year. The effective tax rate decreased by 5.8 percent for the nine months ended September 30, 2026 when compared to the same period in 2025, primarily due to a favorable shift in the geographic mix of pre-tax income toward lower-tax jurisdictions and strong domestic pre-tax income. The effective income tax rate for the three and nine months ended September 30, 2026 differs from the U.S. federal statutory rate of 21.0 percent due to various factors, including operating in multiple state and foreign jurisdictions partially offset by tax credits for which the Company qualifies. The Company had unrecognized tax benefits totaling $3.2 million and $3.1 million as of September 30, 2026 and December 31, 2025, respectively, that if recognized would result in a reduction of the Company’s effective tax rate. The liabilities are classified as other long-term liabilities in the accompanying Consolidated Balance Sheets. The Company recognizes interest and penalties related to income tax matters in income tax expense and reports the liability in current or long-term income taxes payable as appropriate.
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