Income Taxes

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

19. Income Taxes

An income tax benefit of $28.6 for Holdings and $27.9 for CUSA was recorded during the six months ended June 30, 2024 resulting in an effective tax rate of approximately (66.0)% for Holdings and (55.0)% for CUSA, respectively.

During the six months ended June 30, 2024, the Company recorded a deferred tax benefit of $39.5 discretely related to the release of valuation allowances in certain foreign jurisdictions. The release of these valuation allowances was the result of the availability of positive evidence related to sustained taxable income in the relevant jurisdictions to support the future realizability of deferred tax assets. This discrete benefit favorably impacted the effective tax rates of Holdings and CUSA for the six months ended June 30, 2024, causing the income tax benefit to vary significantly from the tax expense derived by applying the statutory tax rate to the pre-tax income of Holdings and CUSA.

There is a possibility that within the next 12 months, sufficient positive evidence may become available to reach a conclusion that a portion of the valuation allowance in the U.S. will no longer be required.