Income Taxes |
6 Months Ended |
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Jun. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes For the three months ended June 30, 2025 and 2024, our provision for income taxes, as a percentage of income before income taxes was 26.8 percent and 66.4 percent, respectively, compared with a U.S. federal statutory rate of 21.0 percent. For the six months ended June 30, 2025 and 2024, our provision for income taxes, as a percentage of income before income taxes was 29.0 percent and 56.2 percent, respectively, compared with a U.S. federal statutory rate of 21.0 percent.
The difference between the effective tax rate and the U.S. federal statutory tax rate for the three and six months ended June 30, 2025, was primarily attributed to operations in foreign countries which are treated as a branch for U.S. tax purposes, partially offset by favorable adjustments to deferred tax assets, foreign derived intangible income deduction and foreign tax credits.
The difference between the effective tax rate and the U.S. federal statutory tax rate for the three and six months ended June 30, 2024, was primarily attributed to operations in foreign countries which are treated as a branch for U.S. tax purposes and foreign losses that do not provide future tax benefit, partially offset by foreign tax credits.
The difference between the effective tax rate for the three and six months ended June 30, 2025, compared to June 30, 2024, was primarily caused by a decrease in foreign losses year over year that presently do not provide future tax benefit, adjustments to deferred tax assets and reserves for uncertain tax positions which were recorded in the prior period but do not repeat in the current period.
Our U.S. federal income tax returns for 2021 through 2023 are open to examination for federal tax purposes. We have several foreign tax jurisdictions with open tax years from 2019 through 2024.
As of June 30, 2025 and December 31, 2024, we had accrued $0.6 million and $0.6 million, respectively, related to unrecognized tax positions net of offsetting tax attributes.
Interim income taxes are based on an estimated annualized effective tax rate applied to the respective quarterly periods, adjusted for discrete tax items in the period in which they occur. Although we believe our tax estimates are reasonable, we can make no assurance that the final tax outcome of these matters will not be different from that which we have reflected in our historical income tax provisions and accruals. Such differences could have a material impact on our income tax provision and operating results in the period in which we make such a determination.
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