Income Taxes |
9 Months Ended | ||||||
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Sep. 30, 2026 | |||||||
| Income Tax Disclosure [Abstract] | |||||||
| Income Taxes |
We estimate our annual effective tax rate to be 21.7% for the full year 2026, which differs from the U.S. federal statutory rate due to state and foreign income taxes, federal taxation of international operations, and nondeductible executive compensation, partially offset by federal tax credits generated. Our actual effective tax rate of 21.5% for the nine months ended September 30, 2026 compared to the estimated annual effective tax rate of 21.7% was lower primarily due to the release of reserves for uncertain tax positions due to statute of limitations expiration, partially offset by shortfalls recognized for employee share-based compensation, net of disallowed executive compensation. The Organization for Economic Co-operation and Development’s, or OECD, Pillar Two Initiative introduced a 15% global minimum tax for certain multinational groups exceeding minimum annual global revenue thresholds. As of September 30, 2026, the global minimum tax rules enacted in countries in which we operate, including the transitional safe harbor provisions, do not have a material impact on our condensed consolidated financial statements. In June 2026, the California Franchise Tax Board commenced an audit of our California income tax returns for the 2022 and 2023 years. In July 2026, the IRS commenced an audit of our 2024 federal income tax return. As of September 30, 2026, we do not expect any significant adjustments as a result of either audit.
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