Income Taxes |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| Income Taxes [Abstract] | |
| INCOME TAXES |
NOTE 14 – INCOME TAXES In general, the Company uses an estimated annual effective tax rate, which is based on expected annual income and statutory tax rates in the various jurisdictions in which the Company operates, to determine its quarterly provision for income taxes. However, to the extent that application of the estimated annual effective tax rate is not representative of the quarterly portion of actual tax expense expected to be recorded for the year in a jurisdiction, the Company determines the provision for income taxes based on actual year-to-date income (loss) which it has done for the quarter ended September 30, 2026. Certain significant or unusual items, if applicable, are separately recognized in the quarter in which they occur and can be a source of variability on the effective tax rates from quarter to quarter. The Company’s effective tax rate may change from period-to-period based on recurring and non-recurring factors including the geographical mix of earnings, enacted tax legislation, and state and local income taxes. The effective income tax rate was (14.6)% and (4.3)% for the three months ended September 30, 2026 and 2025, respectively. The effective income tax rate was )% and (1.0)% for the nine months ended September 30, 2026 and 2025, respectively. The effective income tax rate for the three and nine months ended September 30, 2026 were impacted by the geographical mix of earnings, as well as movement in the federal, state and foreign valuation allowances.
For the nine months ended September 30, 2026, the Company recognized an income tax benefit of approximately $20.6 million related to current-year tax losses. The benefit was recognized because the associated deferred tax assets are expected to be realized through the reversal of existing deferred tax liabilities. Approximately $17.2 million of the benefit was recognized because management concluded that it is more likely than not that deferred tax assets will be realized through the future reversal of deferred tax liabilities arising primarily from acquisition accounting adjustments associated with recent business combinations. The acquisition accounting for these business combinations remains provisional and is subject to refinement during the measurement period. Accordingly, the deferred tax liabilities and the related tax benefit recognized may be adjusted in future periods as additional information becomes available. During the third quarter of 2026, the Company recorded an out-of-period adjustment of approximately $8.3 million related to the correction of income tax accounting matters identified in prior interim periods during 2026 that resulted in an overstatement of the income tax benefit and an understatement of the deferred tax liabilities of this amount. Management concluded that the misstatement was not material to the previously issued financial statements, individually or in the aggregate, and that the correction was not material to the current-period financial statements. |