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Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income before income taxes consisted of the following for the years ended December 31 (in millions):
202520242023
Domestic$132.1 $118.1 $90.1 
Foreign11.1 7.6 6.4 
Total$143.2 $125.7 $96.5 

The components of income tax expense for the years ended December 31 are as follows (in millions):
 202520242023
Current:   
Federal$22.1 $32.0 $22.6 
State10.2 14.7 11.2 
Foreign2.8 2.4 1.6 
Total current expense (benefit)35.1 49.1 35.4 
Deferred:   
Federal2.0 (9.9)(6.3)
State(0.5)— 0.5 
Foreign— (0.3)(0.2)
Total deferred expense (benefit)1.5 (10.2)(6.0)
Total tax expense (benefit)$36.6 $38.9 $29.4 
The Company reclassified the tax effects related to derivative securities and foreign currency translation within other comprehensive income of $0.6 million, $(0.8) million and $(0.9) million in the years ended December 31, 2025, 2024 and 2023, respectively.
During the year ended December 31, 2025, the Company adopted ASU 2023-09 on a retrospective basis to enhance the income taxes disclosure regarding income taxes paid and the rate reconciliation disclosure.

The income tax paid, net of refunds, by the Company for the years ended December 31 are as follows (in millions):

202520242023
Federal
$22.1 $32.0 $25.9 
State
9.1 14.5 12.3 
Foreign
3.0 2.0 (0.4)
Total$34.2 $48.5 $37.8 
Income taxes paid, net of refunds, exceed five percent of total income taxes paid (net) in the following jurisdictions (in millions):

202520242023
State:
Massachusetts
$5.0 $9.1 $7.4 

The differences between income taxes expected at the U.S. federal statutory income tax rate and income taxes reported for the years ended December 31 are as follows (in millions):
 202520242023
$%$%$%
Tax at U.S. federal statutory income tax rate$30.1 21.0 %$26.4 21.0 %$20.3 21.0 %
State income taxes, net of federal benefit7.7 5.5 %11.3 9.0 %5.6 5.8 %
Foreign Tax Effects
Other foreign jurisdictions0.7 0.5 %0.4 0.3 %— — %
Effective of change in tax laws or rates enacted in the current period— — %— — %3.3 3.5 %
Effect of cross-border tax laws0.7 0.5 %0.9 0.8 %0.6 0.6 %
Nontaxable or nondeductible items
Executive Compensation
2.2 1.5 %0.3 0.2 %0.2 0.2 %
Other
(0.1)(0.1)%(0.3)(0.2)%(0.4)(0.4)%
Changes in unrecognized tax benefits
(0.1)(0.1)%0.3 0.2 %0.2 0.2 %
Other Adjustments
Non-controlling interest(5.6)(3.9)%(0.4)(0.3)%(0.3)(0.3)%
Other1.0 0.7 %— — %(0.1)(0.1)%
Effective income tax rate$36.6 25.6 %$38.9 31.0 %$29.4 30.5 %
The Company’s effective income tax rate is higher than the US federal tax rate of 21% primarily due to state taxes and executive compensation, partially offset by non-controlling interest. State taxes in Massachusetts and New York made up greater than 50% of the tax effect of state income taxes.
During the year ended December 31, 2023, Massachusetts enacted a change in the state’s apportionment formula for corporations effective for tax years beginning on or after January 1, 2025. The Company measures its deferred tax assets and liabilities at the enacted rates for the period in which these items are expected to reverse. As a result, in the year ended December 31, 2023, the Company recorded the discrete tax impact due to the effect of the change in tax law on the measurement of its deferred tax assets.
As of December 31, 2025, the Company maintains the assertion that the foreign unremitted earnings of multiple foreign subsidiaries are not permanently reinvested. The amount of deferred tax recorded during the period was not material. For foreign subsidiaries whose investments are permanent in duration, income and foreign withholding taxes have not been provided on the unremitted earnings of those subsidiaries. This amount may become taxable upon repatriation from the subsidiary or a sale or liquidation of the subsidiary. The amount of such unremitted earnings and the amount of any unrecognized deferred income tax liability on these unremitted earnings is immaterial at December 31, 2025.
The significant components of deferred tax assets and deferred tax liabilities for the years ended December 31 are as follows (in millions):
 20252024
Deferred tax assets:  
Investment in partnerships74.1 73.4 
Employee compensation1.2 1.3 
Other3.0 2.6 
Cash flow hedge— 1.6 
Total deferred tax assets78.3 78.9 
Valuation allowance— — 
Deferred tax assets, net of valuation allowance78.3 78.9 
Deferred tax liabilities:  
Other
0.8 0.6 
Total deferred tax liabilities0.8 0.6 
Net deferred tax assets$77.5 $78.3 
At December 31, 2025 and 2024, the Company’s net deferred tax asset primarily relates to its outside basis difference in its investment in Acadian LLC, which is treated as a partnership for federal income tax purposes.
The Company assesses whether a valuation allowance should be established against its deferred income tax assets based on consideration of all available evidence, both positive and negative, using a more likely than not standard. In evaluating the Company’s ability to recover its deferred tax assets, the Company considers all available positive and negative evidence including the existence of cumulative income in the most recent fiscal years, changes in the business in which the Company operates, and the Company’s ability to forecast future taxable income. The weight given to the evidence is commensurate with the extent to which it can be objectively verified. The more negative evidence that exists, the more positive evidence that is necessary and the more difficult it is to support a conclusion that a valuation allowance is not needed. The Company has three years of cumulative earnings as of December 31, 2025 and 2024. As of December 31, 2025, management believes it is more likely than not that the balance of the deferred tax assets will be realized, as such, no valuation allowance is required based on forecasted taxable income.

A reconciliation of the change in gross unrecognized tax benefits for the years ended December 31 is as follows (in millions):
 202520242023
Balance as of January 1$1.3 $1.1 $0.9 
Additions based on current year tax positions0.4 0.3 0.7 
Reductions related to lapses of statutes of limitations(0.6)(0.1)(0.5)
Balance as of December 31$1.1 $1.3 $1.1 
The Company’s liability for uncertain tax positions includes unrecognized benefits of $0.9 million and $1.0 million at December 31, 2025 and 2024, respectively, that if recognized would affect the effective tax rate on income.
The Company recognized $0.0 million, $0.1 million, and $0.1 million in interest and penalties in its income tax provision for the years ended December 31, 2025, 2024 and 2023, respectively. The Company’s liability for uncertain tax positions at December 31, 2025 and 2024 includes accrued interest and penalties of $0.2 million and $0.2 million, respectively.
The Company and its subsidiaries file tax returns in the U.S., U.K., state, local, and other foreign jurisdictions. As of December 31, 2025, the Company is generally no longer subject to income tax examinations by U.S. federal, state, local, or foreign tax authorities for calendar years prior to 2021.

The Company is periodically under examination by various taxing authorities. Examinations are inherently uncertain, may result in payment of additional taxes or the recognition of tax benefits and may be in process for extended periods of time. At December 31, 2025 the Company is subject to examination in two jurisdictions.
On July 4, 2025, H.R.1, commonly referred to as the One Big Beautiful Bill Act (the “OBBBA”), was enacted in the U.S., which includes a broad range of tax reform provisions, including extending and modifying certain key Tax Cuts and Jobs Act provisions (both domestic and international). The legislation has multiple effective dates, with certain provisions effective in 2025 and others to be implemented through 2027. The OBBBA did not have a material impact to the income tax expense during the period ended December 31, 2025.