Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes |
(7)
Income Taxes
The tax provisions for the three and six months ended June 30, 2025 and 2024, were computed using the estimated effective tax rates applicable to each of the domestic and international taxable jurisdictions for the full year. The Company’s provision for income tax expense and effective income tax rate are significantly impacted by the mix of the Company’s domestic and foreign earnings (loss) before income taxes. In the non-U.S. jurisdictions in which the Company has operations, the applicable statutory rates range from 0% to 35%, which is on average significantly lower than the U.S. federal and state combined statutory rate of 26%. The Company’s effective tax rate was 16.4% and 19.7% for the three months ended June 30, 2025 and 2024. For the three months ended June 30, 2025, the decrease in the effective tax rate was due to lower earnings in higher tax jurisdictions. The Company's effective tax rate was 19.8% and 19.3% for the six months ended June 30, 2025 and 2024. For the six months ended June 30, 2025, the increase in the effective tax rate was due to global minimum tax rules that are effective for fiscal year 2025, partially offset by lower earnings in higher tax jurisdictions. In the normal course of business, the Company's tax filings are subject to audit by federal, state and foreign tax authorities. As of June 30, 2025, the Company's U.S. federal tax returns were under examination by the Internal Revenue Service for fiscal years ended December 31, 2015 through December 31, 2022. The Company received communication from the IRS during the current quarter that the examination procedures are closed. The exam did not have a material impact on the amounts disclosed in the unaudited consolidated financial statements. Additionally, the Company is currently under examination in certain foreign jurisdictions. The Company is unable to determine the impact as these examinations have not been completed. On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was signed into law in the United States, which extended key provisions of the 2017 Tax Cuts and Jobs Act including, but not limited to, federal bonus depreciation and deductions for domestic research and development expenditures. The Company is still evaluating the potential impact of the OBBBA on its consolidated financial statements. |