Income Taxes

3 Months Ended

Mar. 31, 2026

Income Tax Disclosure [Abstract]

Income Taxes

5. INCOME TAXES

Our effective tax rate for the three months ended March 31, 2026 was 18.5 percent, compared to 19.6 percent for the same period in 2025. Effective rates are dependent upon components of pretax earnings and the related tax effects. The decrease in the effective tax rate for the three-month period in 2026 was primarily due to higher levels of tax credit utilization.

Income tax expense attributable to income from operations for the three-month periods ended March 31, 2026 and 2025 differed from the amounts computed by applying the U.S. federal tax rate of 21 percent to pretax income by the items detailed in the table below. In interim periods, income taxes are adjusted to reflect the effective tax rate we anticipate for the year, with adjustments flowing through the other items, net line.

	For the Three Months Ended March 31,
	2026				2025
(in thousands)	Amount		%		Amount		%
U.S. federal statutory tax rate	$	14,142	21.0	%	$	16,513	21.0	%
State and local income taxes, net of federal income tax effect		538	0.8	%		555	0.7	%
Tax credit		(2,766)	(4.1)	%		(645)	(0.8)	%
Nontaxable or Nondeductible Items:
Excess tax benefit on share-based compensation		(1,851)	(2.7)	%		(2,750)	(3.5)	%
Other nontaxable or nondeductible items		2,393	3.5	%		1,744	2.2	%
Total tax expense	$	12,456	18.5	%	$	15,417	19.6	%

We have recorded our deferred tax assets and liabilities using the statutory federal tax rate of 21 percent. We believe it is more likely than not that all deferred tax assets will be recovered, given the carry back availability as well as the result of future operations, which we believe will generate sufficient taxable income to realize the deferred tax asset.