Income Taxes

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

12. Income Taxes

The Company’s income before income taxes include income from both U.S. and foreign jurisdictions. The annual effective tax rate varies from the U.S. federal statutory rate of 21% due to results of foreign operations that are subject to income taxes at different statutory rates. In addition, tax expense is impacted by losses in jurisdictions where no tax benefit can be realized.

For the three months ended September 30, 2024, and 2023, the Company recorded a benefit for income taxes of $0.3 million and zero, respectively. For the nine months ended September 30, 2024, and 2023, the Company recorded a provision for income taxes of $3.2 million and a benefit for income taxes of $1.0 million, respectively. During the three months ended September 30, 2023, the Company recorded a $3.2 million discrete tax benefit related to the resolution of a previously reserved foreign income tax matter. During the nine months ended September 30, 2023, the Company recorded discrete net tax benefits of $17.1 million, of which $13.9 million related to a release of a valuation allowance and $3.2 million related to the resolution of a previously reserved foreign income tax matter.

The Company’s unrecognized tax benefits, excluding interest and penalties, were $10.9 million and $9.1 million as of September 30, 2024, and December 31, 2023, respectively.