Income Taxes

9 Months Ended

Sep. 30, 2025

Income Tax Disclosure [Abstract]

Income Taxes

6. Income Taxes

The effective income tax rates on continuing operations for the nine months ended September 30, 2025 and 2024 were 27.0% and 31.8%, respectively. In general, the effective tax rates differed from the U.S. federal statutory income tax rate primarily due to state income taxes, non-deductible expenses such as those related to certain executive compensation, and discrete tax expenses related to stock option exercises during the period.

The year-to-date provision for income taxes for the nine months ended September 30, 2025 included taxes on earnings at an anticipated annual effective tax rate of 25.5% and a net, unfavorable tax impact of $1,782 related primarily to discrete tax expense originating from stock options exercised during the nine months ended September 30, 2025.

The year-to-date provision for income taxes for the nine months ended September 30, 2024 included taxes on earnings at an anticipated annual effective tax rate of 25.5% and a net, unfavorable tax impact of $5,652 related primarily to discrete tax expense originating from stock options exercised during the nine months ended September 30, 2024.

On July 4, 2025, the "One Big Beautiful Bill Act” (the "OBBBA") was signed into law. The OBBBA includes tax reform provisions including 100% bonus depreciation, full expensing of domestic research expenditures, and modifications to interest expense limitations. After initial evaluation, the Company does not currently expect these laws to have a material effect on tax expense or the anticipated annual effective tax rate. We expect certain provisions effective for the 2025 tax year will decrease current and future cash taxes paid on the consolidated financial statements.

For the nine months ended September 30, 2025 and 2024, we recorded $62 and $406, respectively, related to unrecognized tax benefits or interest and penalties related to any uncertain tax positions.