Income Taxes

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes 

Income tax expense from continuing operations for the three and six months ended June 30, 2024 was $10.0 million and $17.9 million, respectively, compared with $15.3 million and $23.3 million for the three and six months ended June 30, 2023, respectively. The decrease in expense for tax for the three and six months ended June 30, 2024, compared with the three and six months ended June 30, 2023, is primarily due to a $23.6 million favorable adjustment to the Company's estimated forward loss provision related to the Network Rail contract in the U.S. not recurring in 2024, as well as a $3.7 million valuation allowance for a deferred tax asset in a certain foreign jurisdiction not recurring in 2024.

For the three and six months ended June 30, 2024, the Company calculated its quarterly tax provision based on its best estimate of the full year tax rate applicable to the quarter. For the three and six months ended June 30, 2023, due to the insignificant amount of pre-tax book loss relative to the size of permanent book-tax differences and a varying net income (loss) pattern projected for the year, the Company’s tax provision estimate was determined using an actual year-to-date method.

The reserve for uncertain tax positions on June 30, 2024 and December 31, 2023 was $3.4 million, including interest and penalties. Within the next twelve months, it is reasonably possible that $0.6 million in unrecognized income tax benefits will be recognized upon settlement of tax examinations and the expiration of various statutes of limitations.