Income Taxes |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | 6. Income Taxes The Company recorded income tax expense of $40.5 million, or 22.8% of pre-tax income, for the three months ended September 30, 2026, compared to $41.7 million, or 17.5% of pre-tax income, for the three months ended September 30, 2025. Results for the three months ended September 30, 2026 were impacted by a $0.7 million net discrete tax charge, including a $5.4 million charge related to the recapture of a purchased federal income tax credit and a $4.0 million benefit related to the expiration of the statute of limitations with respect to uncertain tax position reserves for certain anti-hybrid tax legislation. Results for the three months ended September 30, 2025 were impacted by $21.5 million of net discrete tax benefits, including $19.1 million related to the release of uncertain tax positions on the resolution of a multi-year federal income tax audit. The Company recorded income tax expense of $88.2 million, or 19.5% of pre-tax income, for the nine months ended September 30, 2026, compared to $143.7 million, or 21.8% of pre-tax income, for the nine months ended September 30, 2025. Results for the nine months ended September 30, 2026 were impacted by $17.9 million of net discrete tax benefits, including $20.7 million of benefits from the anti-hybrid tax matter and the $5.4 million charge related to the recapture of a purchased federal income tax credit. Results for the nine months ended September 30, 2025 were impacted by $20.1 million of net discrete tax benefits, including $19.1 million related to the release of uncertain tax positions on the resolution of the multi-year federal income tax audit. The Company’s liability for gross unrecognized tax benefits, excluding related interest and penalties, was $29.4 million and $45.5 million as of September 30, 2026 and December 31, 2025, respectively. As of September 30, 2026, net unrecognized tax benefits, excluding interest and penalties, of $18.8 million would affect the Company’s net income if recognized. The Company recognizes accrued interest and penalties, if any, related to unrecognized tax benefits in the “Provision for income taxes” in the Condensed Consolidated Statements of Income. During the nine months ended September 30, 2026 and 2025, the Company recognized income of $1.6 million and $4.1 million, respectively, related to interest and penalties on unrecognized tax benefits. At September 30, 2026, the Company had accruals for the payment of interest and penalties of $7.0 million. “Cash paid for income taxes, net of refunds” disclosed on the Condensed Consolidated Statements of Cash Flows includes cash paid for the purchase of transferable tax credits during the nine months ended September 30, 2026 and 2025 of $35.4 million and $9.7 million, respectively. |