Income Taxes

3 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Note 10 — Income Taxes

For the three months ended June 30, 2024, the Company recorded an income tax provision of $1.2 million resulting in an effective tax rate of negative 5%. The effective tax rate for the period differed from the U.S. statutory rate primarily due to a U.S. valuation allowance and foreign tax rate differences.

For the three months ended June 30, 2023, the Company recorded an income tax benefit of an insignificant amount, resulting in effective tax rate of 1%. The effective tax rate for the period differed from the U.S. statutory rate primarily due to the benefit of federal R&D tax credits offset by expense for non-deductible transaction costs related to the Inmarsat Acquisition.

The Company's total valuation allowance decreased from $353.6 million at March 31, 2024 to $352.9 million at June 30, 2024 relating to carryforwards for federal, state, and foreign net operating losses, federal and state R&D tax credits, and foreign tax credits.

For the three months ended June 30, 2024, the Company’s gross unrecognized tax benefits increased by an insignificant amount and interest and penalties decreased by $1.1 million. Of the total $186.4 million gross unrecognized tax benefits at June 30, 2024, $16.2 million would reduce the Company's annual effective tax rate if recognized based on the Company's valuation allowance position at June 30, 2024.