Income Taxes

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective tax rate for the three months ended September 30, 2024 was (88.7)%, reflecting a tax benefit of $1.8 million on pre-tax income of $2.1 million, compared to 171.9% for the three months ended September 30, 2023, which reflected a tax benefit of $11.2 million on pre-tax loss of $6.5 million. The change in the effective tax rate for the three months ended September 30, 2024 compared to the prior year quarter was primarily a result of a reduction to the Global intangible low-taxed income ("GILTI") inclusion in the U.S. in the prior year quarter, and the impact of Pillar Two Global Minimum Tax ("Pillar Two") introduced by The Organization for Economic Co-operation and Development ("OECD") and adopted by certain non-U.S. countries, including countries in which we operate, partially offset by a reduced state tax provision as the result of the change in reporting election.

The effective tax rate for the nine months ended September 30, 2024 was 58.1%, reflecting a tax benefit of $48.9 million on pre-tax loss of $84.2 million, compared to 45.6% for the nine months ended September 30, 2023, which reflected a tax benefit of $40.5 million on pre-tax loss of $88.9 million. The change in the effective tax rate for the nine months ended September 30, 2024 compared to the prior year period was primarily a result of a decrease to our uncertain tax positions as a result of an audit settlement, and a reduced state tax provision as the result of the change in reporting election, partially offset by the impact of Pillar Two introduced by OECD and adopted by certain non-U.S. countries, including countries in which we operate.