v3.26.1
Income Taxes
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Tax Disclosure Income Taxes
The income tax provision includes U.S. federal, state and local, and foreign income taxes and is generally based on the application of a forecasted annual income tax rate applied to the current quarter's year-to-date pre-tax income or loss. In determining the estimated annual effective income tax rate, the Company analyzes various factors, including projections of the Company's annual earnings or losses, taxing jurisdictions in which the earnings or losses will be generated, the impact of state and local income taxes, the Company's ability to use tax credits and net operating loss carryforwards, carrybacks, capital loss carryforwards, and available tax planning alternatives. Discrete items, including the effect of changes in tax laws, tax rates and certain circumstances with respect to valuation allowances or the tax effect of other unusual or nonrecurring transactions or adjustments are reflected in the period in which they occur as an addition to, or reduction from, the income tax provision, rather than included in the estimated annual effective income tax rate. Additionally, the Company's interim effective income tax rate is computed and applied without regard to pre-tax losses where such losses are not expected to generate a current-year tax benefit.
The following table summarizes income tax expense as follows:
THREE MONTHS ENDEDSIX MONTHS ENDED
JUNE 30JUNE 30
2026202520262025
Income (loss) before income taxes$(23.2)$(13.2)$(55.3)$3.6 
Income tax expense $8.1 $0.2 $6.3 $8.3 
In 2026, the Company's reported income tax expense differed from the amount that would result from applying the U.S. federal statutory tax rate, primarily due to an interim adjustment for pre-tax losses for which no income tax benefit was recognized as a result of its valuation allowance positions.
During the second quarter of 2026, the Company recognized a discrete tax charge of $3.4 million, related to the establishment of a full valuation allowance against the beginning-of-the-year balance of Brazilian deferred tax assets. Based on a review of recent operating results, cumulative losses, and a declining forecast, management concluded that the evidence no longer supports a more-likely-than-not standard that these deferred tax assets will be realized.
In 2025, the Company’s reported income tax expense differed from the amount that would result from applying the U.S. federal statutory rate, primarily due to recording additional valuation allowances attributable to the capitalization of research and development expenses under U.S. tax rules in effect at that time. The reported income tax expense was further impacted by an interim adjustment from pre-tax losses for which no tax benefit was recognized.