Income Taxes

9 Months Ended

Sep. 30, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted, resulting in changes to the U.S. federal tax law. 

Under ASC 740, Income Taxes, the effect of tax law changes are required to be recognized in the reporting period of

enactment, which is the three months ended September 30, 2025. Provisions of the OBBBA that will impact the Company

include (i) the return to the EBITDA formula used to calculate the business interest expense limitation under Internal

Revenue Code ("IRC") Section 163(j) and (ii) the allowance of 100% bonus depreciation for qualifying property placed in

service after January 19, 2025. The provisions of the OBBBA will reduce the Company's current tax liability, but are not

expected to have a material impact on the Company's current year tax expense.

The Company’s income tax provision was a benefit of $3.4 million, which equates to an effective tax rate of 154.8%, and 

expense of $11.1 million, which equates to an effective tax rate of 19.4%, for the three months ended September 30, 2025 and

2024, respectively. The increase in the effective tax rate was due to an increase in noncontrolling interest earnings as a

percentage of pre-tax income (loss). The Company’s income tax provision was an expense of $38.1 million, which equates to

an effective tax rate of 19.6%, and $37.0 million, which equates to an effective tax rate of 18.9%, for the nine months ended

September 30, 2025 and 2024, respectively.

The Company follows the provisions of ASC 740, Income Taxes, regarding unrecognized tax benefits. At September 30,

2025 and December 31, 2024, the Company had no accrual for unrecognized tax benefits.

As of September 30, 2025, the Company had no ongoing or pending federal examinations for prior years. The Company has

outstanding federal income tax refund claims for the 2016 and 2018 tax years. At September 30, 2025, the refund claims

totaled $10.0 million and were included in other current assets on the Company’s unaudited condensed consolidated balance

sheet. These refund claims are subject to ongoing Joint Committee on Taxation reviews, as well as a statute waiver through

December 31, 2026 that has been agreed to for the years 2016 through 2018. At September 30, 2025, interest income

receivable related to the refund claim totaled $1.9 million, which was included in other current assets. During the nine months

ended September 30, 2025, the Company accrued $1.1 million of interest income related to the refund claim, which was

included in the Company's income tax expense. The Company’s tax years from 2021 through 2024 remain open to

examination by federal and state taxing authorities.