Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Income Taxes | |
| Income Taxes |
The Company calculates its income tax amounts using a separate return methodology. Under this method, the Company prepares the financial statements as if it will file separate returns with tax authorities. As a result, the Company’s deferred tax balances and effective tax rate as a stand-alone entity will likely differ significantly from those calculated in the actual consolidated return with Embraer. The calculation of income taxes on a separate return basis requires a considerable amount of judgment and use of both estimates and allocations. The tax loss carryforwards and valuation allowances reflected in the condensed consolidated financial statements are based on a hypothetical stand-alone income tax return basis and may not exist in the ERJ and EAH consolidated financial statements.
For both the three months ended June 30, 2025 and 2024, the Company recognized income tax expense of $0.4 million due to operations in the Brazilian tax jurisdiction. For the six months ended June 30, 2025 and 2024, the Company recognized income tax benefit of $0.1 million and income tax expense of $1.0 million, respectively, due to operations in the Brazilian tax jurisdiction. |