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

12. Income Taxes

The Company’s effective tax rates on pre-tax income were 23.6% and 14.7% for the three months ended June 30, 2025 and 2024, respectively, and 20.0% and 15.4% for the six months ended June 30, 2025 and 2024, respectively. For the three months ended June 30, 2025, compared to the corresponding period in the prior year, the increase in the effective tax rate was primarily due to the reorganization of the Company’s international operations, which took place during the year ended December 31, 2024, and discrete items. For the six months ended June 30, 2025 compared to the corresponding period in the prior year, the increase in the effective tax rate was primarily due to the reorganization of the Company’s international operations, partially offset by discrete benefits.

 

Unrecognized tax benefits are reflected in Income taxes payable in the Condensed Consolidated Balance Sheets. The total amount of unrecognized tax benefits as of June 30, 2025 and December 31, 2024 was $60.9 million and $71.6 million, respectively, including interest and penalties.

 

The Company’s tax filings are subject to examination by U.S. federal, state, and various non-United States jurisdictions. The conclusion of the examination of the Company’s consolidated federal income tax returns for 2017 and 2018 resulted in both agreed and unagreed adjustments. The Company is contesting the one remaining unagreed adjustment at the IRS Appeals level and has fully reserved for this unagreed adjustment. The statute of limitations for the U.S. federal returns for 2017 and 2018 has been extended to September 30, 2025. The Company’s U.S. federal income tax returns since 2021 are also eligible to be examined.

On July 4, 2025, the United States government enacted into law the One Big Beautiful Bill Act (the “OBBB”). The OBBB includes a broad range of tax reform provisions affecting businesses, and the Company is currently evaluating the potential impact the OBBB will have on its results of operations and business.