Income Taxes

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

(11)Income Taxes

The Company’s effective tax rates for the three and six months ended June 30, 2024 were (3.6)% and 8.9% respectively. The Company’s effective tax rates for the three and six months ended June 30, 2024 were lower than the U.S. statutory tax rate mainly due to the tax benefit related to the U.S. deduction for foreign derived intangible income (“FDII”) and research and development tax credits, partially offset by an expected increase in foreign withholding taxes and U.S. base erosion and anti-abuse tax.

The Company’s effective tax rates for the three and six months ended June 30, 2023 were 1.2% and 3.2%, respectively. The goodwill impairment relating to the electronics and general metal finishing reporting units of MSD and the equipment solutions reporting unit of PSD was considered non-deductible goodwill for tax purposes and therefore no tax benefit was recorded related to the goodwill impairment. The tax effect of the impairment of the intangible assets was discretely recorded in its entirety during the three months ended June 30, 2023. The Company’s tax benefits of $22 for the three months ended June 30, 2023 and $59 for the six months ended June 30, 2023 were primarily due to the loss from operations and the impairment of intangible assets for these periods. The Company’s effective tax rates for the three and six months ended June 30, 2023 were lower than the U.S. statutory tax rate primarily due to the tax benefit related to the impairment of intangible assets.