Income Taxes

3 Months Ended

Mar. 31, 2025

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 $6.5 million and $1.3 million for the three months ended March 31, 2025 and 2024, respectively. The income tax expense for the three months ended March 31, 2025 was favorably impacted by lower profits in non-US jurisdictions and additional tax credits recorded during the period. Additionally, tax expense of $1.0 million related to equity-based compensation was recorded discretely. The tax expense for the three months ended March 31, 2024, was impacted by higher income reported in non-U.S. jurisdictions, and a tax expense of $0.4 million related to equity-based compensation recorded discretely.

As of March 31, 2025 and 2024, the balance of reserves for uncertain tax positions was $0.7 million and zero, respectively.