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Income Tax Provision
 6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income Tax Provision Income Tax Provision
We had an effective income tax rate of 17.4% and 16.2% for the three and six months ended June 30, 2025, respectively, compared to 13.9% and 16.1% for the three and six months ended June 30, 2024, respectively. The increase in the effective tax rate for the three months ended June 30, 2025, as compared to the prior period, is due to a decrease in excess tax benefits related to stock incentive awards and research tax credit benefits, partially offset by a decrease in liabilities for uncertain tax positions. The increase in the effective tax rate for the six months ended June 30, 2025, as compared to the prior period, is due to a decrease in research tax credit benefits, partially offset by an increase in excess tax benefits related to stock incentive awards and decreases in liabilities for uncertain tax positions and state taxes.
The effective income tax rates for the periods presented are different from the statutory United States federal income tax rate of 21% primarily due to the excess tax benefits related to stock incentive awards and the tax benefits of research tax credits, offset by state income taxes, liabilities for uncertain tax positions, and non-deductible business expenses.
We made income tax payments, net of refunds, of $46.3 million and $39.1 million in the six months ended June 30, 2025, and June 30, 2024, respectively.
On July 4, 2025, the reconciliation bill, commonly referred to as the One Big Beautiful Bill Act (“OBBBA”) was signed into law, which includes a broad range of tax reform provisions that may affect our Company. The OBBBA allows an elective deduction for domestic Research and Development (“R&D”), a reinstatement of elective 100% first-year bonus depreciation, and a more favorable tax rate on Foreign-derived Deduction Eligible Income and income from non-U.S. subsidiaries (“Net CFC Tested Income”), among other provisions. We are currently evaluating the impact of these provisions, which could affect our effective tax rate in 2025 and future periods. We anticipate a significant reduction in current tax payments in the next 12 months, as well as a decrease in deferred tax assets and the income tax payable related to the provisions for full expensing of domestic R&D and bonus depreciation. As the legislation was signed into law after the close of our second quarter, the impacts are not included in our operating results for the six months ended June 30, 2025.