Income Taxes

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Note 13 – Income Taxes

The Company recorded an income tax benefit of $19.0 million, a (652.3)% effective tax rate for the three months ended September 30, 2024. Income tax expense of $1.0 million, a (171.3)% effective tax rate was recorded for the three months ended September 30, 2023. The effective tax rate for the three months ended September 30, 2024 differs from the U.S. statutory rate primarily due to foreign income and a change in valuation allowances related to interest expense limitation deferred tax assets. The effective tax rate for the three months ended September 30, 2023 differs from the U.S. statutory rate primarily due to adjustments to uncertain tax positions, a book loss for the quarter, and other permanent items.

The Company recorded an income tax benefit of $23.3 million, a 498.1% effective tax rate for the nine months ended September 30, 2024. Income tax expense of $3.6 million, a 33.1% effective tax rate was recorded for the nine months ended September 30, 2023. The effective tax rate for the nine months ended September 30, 2024 differs from the U.S. statutory rate primarily due to foreign income and a change in the valuation allowance related to interest expense limitation deferred tax assets. The effective tax rate for the nine months ended September 30, 2023 differs from the U.S. statutory rate primarily due to state taxes, foreign operations, and other permanent items, offset by the release of a reserve for an uncertain tax benefit during the quarter.

The Company and its subsidiaries are subject to U.S. federal income tax, as well as income tax of multiple state and foreign jurisdictions. As of September 30, 2024, the Company is subject to U.S. federal income tax examinations for the years 2020 through 2022 and income tax examinations from various other jurisdictions for the years 2017 through 2023.

Earnings from the Company’s foreign subsidiaries are considered to be indefinitely reinvested. A distribution of these non-U.S. earnings in the form of dividends or otherwise may subject the Company to foreign withholding taxes and U.S. federal and state taxes.