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Income Taxes
 9 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
We use the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amount of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Such amounts are adjusted, as appropriate, to reflect changes in tax rates expected to be in effect when temporary differences reverse. The effect of a change in tax rates on deferred taxes is recognized in the period that the change is enacted. A valuation allowance is recorded to reduce the Company's deferred tax assets to the amount that is more likely than not to be realized. We had no recorded valuation allowance at September 30, 2025 and December 31, 2024. Our effective tax rate was 16.5% for both the three months ended September 30, 2025 and 2024. Our effective tax rate was 23.2% and 19.1% for the nine months ended September 30, 2025 and 2024, respectively. The change in rate between years is the result of a reduction in unrecognized tax benefits due to the lapse of applicable statutes of limitations.

We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. We record interest and penalties related to unrecognized tax benefits in income tax expense.

At September 30, 2025 and December 31, 2024, we had a total of $4.2 million and $5.2 million in gross unrecognized tax benefits, respectively included in long-term income taxes payable in the consolidated balance sheet. Of this amount, $3.4 million and $4.1 million represents the amount of unrecognized tax benefits that, if recognized, would impact our effective tax rate as of September 30, 2025 and December 31, 2024. The net change in unrecognized tax benefits was nominal during the three months ended September 30, 2025 and September 30, 2024, respectively. The net change in unrecognized tax benefits
was a decrease of $1.0 million and a decrease of $0.3 million during the nine months ended September 30, 2025 and September 30, 2024, respectively. The total net amount of accrued interest and penalties for such unrecognized tax benefits was $0.9 million and $1.0 million at September 30, 2025 and December 31, 2024, respectively and is included in long-term income taxes payable in the consolidated balance sheets. These unrecognized tax benefits relate to state income tax filing positions. Income tax expense is increased each period for the accrual of interest on outstanding positions and penalties when the uncertain tax position is initially recorded. Income tax expense is reduced in periods by the amount of accrued interest and penalties associated with reversed uncertain tax positions due to lapse of applicable statute of limitations, when applicable or when a position is settled. Net interest and penalties included in income tax expense was nominal for both the three and nine month periods ended September 30, 2025 and September 30, 2024.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
2025
 (in thousands)
Balance at December 31, 2024$5,197 
Additions based on tax positions related to current year57 
Additions for tax positions of prior years79 
Reductions due to lapse of applicable statute of limitations(1,096)
Balance at September 30, 2025$4,237 

A number of years may elapse before an uncertain tax position is audited and ultimately settled. It is difficult to predict the ultimate outcome or the timing of resolution for uncertain tax positions. It is reasonably possible that the amount of unrecognized tax benefits could significantly increase or decrease within the next twelve months. These changes could result from the expiration of the statute of limitations, examinations, or other unforeseen circumstances. We do not have any outstanding litigation related to income tax matters. At this time, management’s best estimate of the reasonably possible change in the amount of gross unrecognized tax benefits is a decrease of approximately $0.5 million to an increase of approximately $0.5 million during the next twelve months, due to the combination of expiration of certain statute of limitations and estimated additions. The federal statute of limitations remains open for the years 2022 and forward. Tax years 2015 and forward are subject to audit by state tax authorities depending on the tax code and administrative practice of each state. In July 2025, the U.S. enacted comprehensive tax legislation, commonly referred to as the One Big Beautiful Bill Act (“OBBBA”). The estimated impact of OBBBA, including the provision for 100% bonus depreciation, has been included in these financial statements.