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Income Taxes
 6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

14. INCOME TAXES

 

The Company recognizes income taxes under the asset and liability method. Deferred income taxes are recognized for differences between the financial reporting and tax bases of assets and liabilities at enacted statutory tax rates in effect for the years in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. In determining future taxable income, the Company is responsible for assumptions that it utilizes, including the amount of Irish and non-Irish pre-tax operating income, the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies. These assumptions require significant judgment about the forecasts of future taxable income and are consistent with the plans and estimates that the Company uses to manage the underlying business.

 

The Company recorded income tax provisions on income from continuing operations of $17.7 million and $20.8 million during the three and six months ended June 30, 2025, respectively, and of $22.1 million and $30.0 million during the three and six months ended June 30, 2024, respectively. The income tax provisions during each of the three and six months ended June 30, 2025 and 2024 were primarily attributable to taxes on income earned in Ireland.

 

The Company’s effective tax rate during the six months ended June 30, 2025 and 2024 was 15.9% and 18.3%, respectively. The decrease in the effective tax rate was primarily due to an increase in windfall benefits from employee equity activity and an expense recorded in 2024 related to the sale of the Athlone Facility. The effective tax rates during the six months ended June 30, 2025 and 2024 exceeded the Irish statutory tax rate of 12.5%, primarily due to non-deductible expenses and income that was taxable at rates higher than the Irish statutory tax rate.

 

On July 4, 2025, the One Big Beautiful Bill (the “OBB Bill”) was signed into law. This legislation permanently extends, with modifications, several individual, business, and international tax provisions originally enacted under the Tax Cuts and Jobs Act of 2017. The Company performed an initial assessment of the OBB Bill and expects this legislation to result in a material increase in cash flows provided by operating activities and a material decrease in net U.S. deferred tax assets over the next number of years.