Income taxes

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Income taxes

Income taxes

The income tax provision from income taxes in the periods presented is based upon the income (loss) before income taxes (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Income tax (provision) benefit	$	(456)	$	1,206	$	(1,279)	$	(1,199)

 The Company’s income tax provision in the three and nine months ended September 30, 2021 was primarily related to income taxes on earnings from its foreign tax jurisdictions.

The Company’s income tax benefit (provision) in the three and nine months ended September 30, 2020 was primarily related to updating the projected forecast of the tax provision from U.S. and non-U.S. operations.

The Company projected a pretax loss for its U.S. operations and a higher effective tax rate based on non-U.S. operations for the three months ended September 30, 2020. The tax provision for the nine months ended September 30, 2020 was primarily related to income taxes on earnings from its foreign tax jurisdictions.

The Company conducts its business globally and its operating income is subject to varying rates of tax in the U.S., China and Japan. Consequently, the Company’s effective tax rate is dependent upon the geographic distribution of its earnings or losses and the tax laws and regulations in each geographical region.

Due to historical losses in the U.S., the Company has a full valuation allowance on its U.S. federal and state deferred tax assets. Management continues to evaluate the realizability of deferred tax assets and the related valuation allowance. If management's assessment of the deferred tax assets or the corresponding valuation allowance were to change, the Company would record the related adjustment to income during the period in which management makes the determination.

As of September 30, 2021, there were no material changes to either the nature or the amounts of the uncertain tax positions previously determined for the year ended December 31, 2020.

On March 27, 2020, the U.S. enacted the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act which provided certain tax relief measures. On December 27, 2020, the U.S. enacted the Consolidated Appropriations Act of 2021 (CAA) which extended and expanded certain tax relief measures created by the CARES Act. On March 11, 2021, the U.S. enacted the American Rescue Plan Act of 2021 (ARPA). These Acts have not had a material impact on the Company's operations to date and the Company will continue to evaluate the impact they may have, if any, on its future business.