Note 7 - Income Taxes |
6 Months Ended |
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Jun. 30, 2025 | |
| Notes to Financial Statements | |
| Income Tax Disclosure [Text Block] |
NOTE 7 – INCOME TAXES
For the three and six months ended June 30, 2025 we generated $18 million income and $27 million income, respectively, from continuing operations before taxes and recorded a provision for income taxes of $5 million expense and $6 million expense, respectively, resulting in an effective tax rate of 28% and 22%, respectively. Our rates generally differ from the U.S. federal statutory rates of 21% as a result of state income taxes, non-deductible expenses and differing foreign income tax rates. The effective tax rate for the three months ended June 30, 2025 was higher than the U.S. federal statutory rate due to non-deductible expenses. The effective tax rate for the six months ended June 30, 2025 was higher than the U.S. federal statutory rate due to a tax benefit on the vesting of stock awards, non-deductible expenses and the effect of foreign operations.
For the three and six months ended June 30, 2024, we generated $42 million and $70 million, respectively, in income from continuing operations before taxes and recorded a provision for income taxes of $12 million and $20 million, respectively, resulting in an effective tax rate of 29% in both periods. Our rates generally differ from the U.S. federal statutory rates of as a result of state income taxes, non-deductible expenses and differing foreign income tax rates. The effective tax rate for the three and six months ended June 30, 2024 was higher than the U.S. federal statutory rate due to foreign losses with no tax benefit due to valuation allowances.
On July 4, 2025, the One Big Beautiful Bill Act was enacted which included provisions related to bonus depreciation, research and development, foreign derived intangible income and modifications to the calculation for excess business interest expense limitation under §163(j) to the current tax estimate. The Company is currently evaluating the impact of these policies which could affect the Company's effective tax rate and deferred tax assets in 2025 and future periods.
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