Income Taxes |
9 Months Ended |
|---|---|
Sep. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes |
8. Income Taxes Income taxes were $31.7 million and $23.2 million for the three months ended September 30, 2025 and 2024, respectively, and $81.9 million and $40.4 million for the nine months ended September 30, 2025 and 2024, respectively. The effective income tax rate was 42.4% and 32.9% for the three months ended September 30, 2025 and 2024, respectively, and 36.5% and 34.6% for the nine months ended September 30, 2025 and 2024, respectively. The increase in the effective tax rate for the three months ended September 30, 2025, as compared to the same period in 2024, was primarily due to changes in the geographic mix of the Company’s income partially offset by an increase in tax benefits from discrete events. The increase in the effective tax rate for the nine months ended September 30, 2025, as compared to the same period in 2024, was primarily due to a decrease in tax benefits from discrete events partially offset by changes in the geographic mix of the Company’s income. As of September 30, 2025, the total amount of unrecognized tax benefits, including related interest and penalties, was $45.5 million. If the total amount of unrecognized tax benefits was recognized, $32.7 million of unrecognized tax benefits, $8.2 million of interest, and $1.3 million of penalties would impact the effective tax rate. The Company believes that it is reasonably possible that the amount of unrecognized tax benefits could decrease by up to approximately $8.1 million within the next twelve months. Of this possible decrease, $7.2 million would be due to the expiration of statute of limitations in various jurisdictions. The remaining possible decrease of $0.9 million would be due to the settlement of audits or resolution of administrative or judicial proceedings. On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act (“OBBBA”), which in part, increases the tax deductibility of interest and research and development expenses beginning in 2025. The international provisions of the tax bill, including the minimum tax on foreign earnings, export income, and foreign tax credits, become effective in 2026. The Company recognized the effects of the enacted provisions during the third quarter of 2025, which did not have a material impact on the Company’s condensed consolidated financial statements. Based on the Company’s preliminary analysis, the financial impact of the provisions with future effective dates is not expected to be material to its condensed consolidated financial statements. However, the Company continues to evaluate the OBBBA and monitor additional guidance issued by regulatory authorities to assess any potential impacts on its condensed consolidated financial statements. |