Income Taxes

3 Months Ended

Mar. 31, 2026

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company follows guidance under ASC Topic 740-270 Income Taxes, which requires that an estimated annual effective tax rate is applied to year-to-date ordinary income (loss). At the end of each interim period, the Company estimates the effective tax rate expected to be applicable for the full fiscal year. The tax effect of discrete items is recorded in the quarter in which the discrete events occur.

The Company recorded income tax expense of $2.1 million and $6.5 million for the three months ended March 31, 2026 and 2025, respectively. The income tax expense for the three months ended March 31, 2026 was impacted favorably by a higher mix of U.S. profits and tax credits recorded during the period. Additionally, discrete tax items for the quarter resulted in a $1.3 million net tax expense related to equity-based compensation, tax reserve releases and a change in state deferred tax assets. The income tax expense for the three months ended March 31, 2025 was impacted favorably by lower profits in non-U.S. jurisdictions and additional tax credits recorded during the period.

As of March 31, 2026 and December 31, 2025, the balance of reserves for uncertain tax positions was $0.8 million for both periods.