Contingencies |
9 Months Ended |
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Sep. 30, 2026 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Contingencies | Contingencies The Company is involved in various legal actions and claims arising in the normal course of its business. Liabilities for loss contingencies arising from such litigation and claims are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. As of September 30, 2026, $2.1 million was recorded in total contingent litigation reserves. The Company is currently under examination by the New Jersey Division of Taxation for tax years ended December 31, 2020 through 2023. The New Jersey Division of Taxation has provided the Company with a preliminary assessment of approximately $14 million in additional Corporate Business Tax ("CBT") for the tax years under examination plus interest and penalties of approximately $7 million and has requested certain information related to earlier tax years. The preliminary assessment is related to a tax position associated with CBT nexus and sourcing of receipts for the ratio used to determine the Company’s income subject to CBT in New Jersey. Management and its tax advisors continue to engage in discussions with the New Jersey Division of Taxation regarding the tax positions under examination. Certain legal and factual issues remain unresolved, including clarification related to nexus and the State’s ability to assess periods prior to those currently under examination, including periods dating back to the formation of the entity. Depending on the resolution of these issues, the final assessment could be materially more or less favorable than the amount reflected in the initial assessment described above. Based on our assessment of the technical merits of its position and the facts and circumstances currently available, including our commitment to pursue all available avenues to support and defend its position, management has concluded that as of September 30, 2026, it is more likely than not that the Company’s position will be sustained at the conclusion of the examination or subsequently and therefore recognition of a liability for an uncertain tax position is not required as of the reporting date. As a result of factual and legal developments affecting the years subsequent to those under examination, the New Jersey CBT issues to which the preliminary assessment relates no longer existed after the period of examination by the New Jersey Division of Taxation. The Company continues to defend its positions regarding New Jersey nexus and the sourcing of income, and believes its positions are supported by the relevant facts and applicable tax law. The Company will continue to monitor developments and reassess its conclusion as the examination proceeds, and additional information becomes available.
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