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Income Taxes
 9 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

12. Income Taxes

The Company’s effective tax rates on pre-tax income were 16.7% and (95.2)% for the three months ended September 30, 2025 and 2024, respectively, and 18.8% and (16.5)% for the nine months ended September 30, 2025 and 2024, respectively. The change in the Company's effective tax rates for the three and nine months ended September 30, 2025 compared to the corresponding periods in the prior year was primarily due to a settlement of the IRS examination of the Company's 2017 and 2018 federal income tax returns in the three months ended September 30, 2024, partially offset by the reorganization of the Company's international operations, which took place during the year ended December 31, 2024, and discrete items.

 

Unrecognized tax benefits are reflected in Income taxes payable in the Condensed Consolidated Balance Sheets. The total amount of unrecognized tax benefits as of September 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 in the U.S. Tax Court and has fully reserved for this unagreed adjustment. The Company’s U.S. federal income tax returns since 2022 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.