For the
six
months
ended
June
30,
2026, the
Company
estimated
its annual
effective
tax rate and
applied
this
effective
tax rate
to its
year-to-date
pretax income
at the
end
of
the interim
reporting
period.
The
tax effects
of
unusual or infrequently
occurring items, including
effects
of changes in tax
laws or rates and changes
in judgment
about
the realizability
of
deferred
tax assets,
are reported
in the interim period
in which they occur.
The Company’s
2026
estimated annual
effective
tax rate is
3.2
%. This
rate is impacted
by inclusion
of
a current
year valuation
allowance
relating
to both
the Australia
and
the U.S.
operations.
Accordingly,
the Company
had
an income
tax benefit
of
$
12.9
million based
on a loss
before
tax of
$
430.9
million for
the six months ended
June
30, 2026, which
includes
discrete
expense of
$
0.7
The Company
had an income
tax benefit
of
$
29.4
million based
on a loss
before
tax of
$
201.8
months
ended
June 30,
2025.
The Company
utilizes
the “more
likely
than not”
standard
in recognizing
a tax benefit
in its
financial
statements.
For the three
months
ended
June 30,
2026, the Company
had
no
new
unrecognized
tax benefits
included in tax
expense. If accrual for
interest or penalties is required, it is the Company’s policy
to include these as a component
of
income tax expense. The
Company
continues to carry
an unrecognized
tax
benefit
of
$
19.3
30,
2026
and December
31, 2025.
The Company is subject to taxation in the U.S. and its various states, as well as Australia and its various localities.
In
the
U.S.
and
Australia,
the first
tax
return
was
lodged
for the
year
ended
December
31,
2018.
In
the
U.S.,
companies
are subject to
open tax audits for
a period of
three years
at the federal level and five
years at the state
level.
In
Australia,
companies
are
subject
to
open
tax
audits
for
a
period
of
four
years
from
the
date
of
assessment.