Income Taxes

3 Months Ended

Mar. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

8. Income Taxes

The Company’s provision for income taxes includes U.S. federal, state and local, and foreign taxes. The provision for income taxes was $81.1 million and $24.1 million for the three months ended March 31, 2025 and 2024, respectively. The Company’s effective tax rate was 84.3% and 24.9% for the three months ended March 31, 2025 and 2024, respectively. The Company’s effective tax rate can vary from period to period depending on the geographic mix of our earnings, changes in tax legislation and tax rates, changes in unrecognized tax benefits and the amount and timing of excess tax benefits related to stock-based payments, among other factors.

During the first quarter of 2025, a New York state tax court issued a decision in a matter that impacted the Company’s assessment of its uncertain tax positions. The Company was not a party to that case, but its historical tax filing position was not supported by the court’s decision. This decision reversed a lower administrative court’s ruling that had been supportive of the Company’s filing position. The provision for income taxes for the three months ended March 31, 2025 includes provisions for unrecognized tax benefits of $54.9 million and $1.4 million related to the Company’s uncertain tax positions from prior periods and the current period, respectively. As of March 31, 2025, the Company’s liability for unrecognized tax benefits was $56.4 million.

The Company or one of its subsidiaries files U.S. federal, state and foreign income tax returns. The Company is currently under a New York State income tax examination for tax years 2015 through 2020 and a New York City income tax examination for the tax years 2016 through 2018. At this time, the Company cannot estimate when the examinations will conclude or the impact such examinations will have on the Company’s Consolidated Financial Statements, if any. Generally, other than the New York City and New York State audits, the Company is no longer subject to tax examinations by tax authorities for years prior to 2020.