Income Taxes

9 Months Ended

Sep. 30, 2025

Income Taxes [Abstract]

Income Taxes

4. INCOME TAXES

Our total provision for income taxes was $40.4 million and $123.2 million for the three and nine months ended September 30, 2025, respectively. We record our income tax provision using a full-year forecasted methodology, including discrete items in the period in which they occur. Our year-to-date effective tax rate was 25.5% for the nine months ended September 30, 2025 compared to 26.0% for the nine months ended September 30, 2024.

In 2021, the Organization for Economic Cooperation and Development (“OECD”) introduced a framework, referred to as Pillar Two, creating a 15% global minimum effective tax rate for large multinational corporations. Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions in which the Company operates, effective beginning January 1, 2024. The Pillar Two effective rates in all jurisdictions in which the Company operates are above 15% and management is not currently aware of any circumstances under which this might change. Accordingly, based upon 2025 results and reporting structure, no top-up taxes have been recorded.

On July 4, 2025, President Trump signed legislation formally entitled “An Act to provide reconciliation pursuant to title II of H. Con. Res. 14.,” but commonly known as the One Big Beautiful Bill Act or “OBBBA”. This legislation, among many provisions, modified treatment of domestic research or experimental expenditures, fixed asset depreciation, and charitable contributions. The Company has reviewed the OBBBA and related guidance; impacts on deferred taxes reflected in the three months ended September 30, 2025, the period of enactment, are immaterial to the overall consolidated financial statements.

Our federal income tax returns for the tax years 2022 and forward are available for examination by the U.S. Internal Revenue Service (“IRS”).  The statute of limitations for the 2021 federal return expired on October 15, 2025. Our state income tax returns for 2020 through 2024 remain subject to examination by various state authorities with the latest period closing on December 31, 2029.  We have not extended the statutes of limitations in any state jurisdictions with respect to years prior to 2020.