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Income Taxes | 6 Months Ended
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Jun. 30, 2025
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 8 – INCOME TAXES A reconciliation of the Company’s statutory rate to the effective tax rate (the “ETR”) for the three and six months ended June 30, 2025 and 2024 is as follows:
| Three Months Ended June 30, |  |  | Six Months Ended June 30, |
| 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Statutory tax rate |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
State taxes, net of federal benefit |  | 6.1 | % |  |  | 6.0 | % |  |  | 6.1 | % |  |  | 6.0 | %
IRC 987 regulations |  | — |  |  |  | — |  |  |  | (7.4 | %) |  |  | — |
Equity-based compensation |  | (0.3 | %) |  |  | — |  |  |  | 0.6 | % |  |  | (2.4 | %)
Uncertain tax position |  | 3.2 | % |  |  | 2.3 | % |  |  | 3.2 | % |  |  | 2.3 | %
Tax credits |  | (11.3 | %) |  |  | (6.6 | %) |  |  | (11.3 | %) |  |  | (6.6 | %)
Other |  | 2.3 | % |  |  | 3.6 | % |  |  | 3.5 | % |  |  | 3.1 | %
Effective tax rate |  | 21.0 | % |  |  | 26.3 | % |  |  | 15.7 | % |  |  | 23.4 | %
The decrease in the Company’s ETR for the three months ended June 30, 2025 compared to 2024 was primarily due to the increased Research and Experimentation tax credit in the second quarter of 2025 and the impact of foreign withholding taxes imposed upon a dividend distribution from our Canadian subsidiaries made during the second quarter of 2024. The decrease in the Company’s ETR for the six months ended June 30, 2025 compared to 2024 was primarily due to an income tax benefit recognized in the first quarter of 2025 from tax planning implemented in connection with the “transitional rules” governing unrealized foreign exchange gains and losses derived from translation of the operations, assets and liabilities of non-U.S. qualified subsidiaries provided by recently finalized U.S. federal tax regulations under Section 987 (“IRC 987”) of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). The regulations under IRC 987 are effective for the Company for tax years beginning after December 31, 2024, and require computation of a pre-transition foreign currency gain or loss to be included in the determination of future taxable income or loss and an analysis of the various elections available to taxpayers. Based on the Company’s current analysis of the regulations and the available election to amortize its pre-2025 cumulative unrealized foreign exchange gains and losses impacting U.S. taxation of foreign earnings under Subpart F of the Internal Revenue Code, the Company recognized a non-cash deferred income tax benefit of $4.5 million related to its election to amortize its pre-transition foreign currency losses against taxable income over ten years. On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act (the “OB3 Act”). The OB3 Act makes permanent changes to certain key elements of the Tax Cuts and Jobs Act of 2017 (the “TCJA”), including 100% bonus depreciation, domestic research cost expensing, the business interest expense limitation and the repeal of various clean energy tax credits. As a result, the OB3 Act is expected to impact the Company’s income tax payables and deferred tax assets as of July 4, 2025, the date of enactment, which will be reflected on the Company’s interim financial statements as of and for the quarter ended September 30, 2025 and the annual financial statements as of and for the year ended December 31, 2025. The Company continues to evaluate the actual financial impact of the OB3 Act on its financial statements.

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