Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | 5. Income Taxes For the three months ended June 30, 2026 we recorded an income tax expense of $12.1 million and, for the three months ended June 30, 2025, we recorded an income tax benefit of $1.3 million, respectively. For the six months ended June 30, 2026 and 2025, we recorded an income tax expense of $13.9 million and $0.3 million, respectively. The change is primarily due to changes in pretax income amounts and jurisdictional mix on a year over year basis. Our income tax expense or benefit for interim periods is determined using an estimate of our annual effective tax rate ("AETR"), adjusted for discrete items. In February 2026, the Company completed the sale of Hawesville. The sale was determined to be a discrete item that is not part of the Company’s ordinary operations and, accordingly, the related tax effects were excluded from the computation of the estimated AETR. The application of the accounting requirements for income taxes in interim periods, after consideration of our valuation allowance on domestic losses, causes a significant variation in the typical relationship between income tax expense/benefit and pretax accounting income/loss as reported on the Consolidated Statements of Operations. The Company evaluates the realizability of its deferred tax assets on a quarterly basis using all available evidence, both positive and negative. The realization of deferred tax assets is dependent on the Company's ability to generate sufficient future taxable income during periods prior to the expiration of tax attributes to fully utilize these assets. As of June 30, 2026, all of Century's U.S. and certain foreign deferred tax assets, net of deferred tax liabilities, continue to be subject to a full valuation allowance. Based on the Company’s assessment of current and anticipated future earnings, it is reasonably possible that sufficient positive evidence of sustained U.S. profitability may become available within the next 12 months to reach a conclusion that the U.S. valuation allowance will no longer be needed. Release of the valuation allowance would result in the recognition of certain deferred tax assets and a corresponding decrease to income tax expense in the period the release is recorded. The timing and amount of any valuation allowance release could vary based on the level of profitability that the Company is actually able to achieve. Section 45X of the Inflation Reduction Act of 2022 ("IRA") contains a production tax credit equal to 10% of certain eligible production costs, including, without limitation, labor, energy, depreciation and amortization and overhead expenses. On October 24, 2024, the U.S. Department of the Treasury and the Internal Revenue Service issued final regulations on the production tax credit requirements under Internal Revenue Code Section 45X (the "IRA Regulations"). The IRA Regulations provide guidance on rules that taxpayers must satisfy to qualify for the IRA Section 45X tax credit. For the three months ended June 30, 2026 and 2025, the Company recognized a reduction of $26.3 million and $21.9 million in Cost of goods sold and a reduction of $0.6 million and $0.5 million in Selling, general and administrative expenses, respectively, within the Consolidated Statements of Operations. For the six months ended June 30, 2026 and 2025, the Company recognized a reduction of $51.3 million and $41.8 million in Cost of goods sold and a reduction of $1.3 million and $1.3 million in Selling, general and administrative expenses, respectively, within the Consolidated Statements of Operations
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