Note 10 - Income Tax |
6 Months Ended | ||
|---|---|---|---|
Jun. 30, 2026 | |||
| Notes to Financial Statements | |||
| Income Tax Disclosure [Text Block] |
The determination of the annual effective tax rate is based upon a number of significant estimates and judgments, including the estimated annual pretax income in each tax jurisdiction in which the Company operates and the development of tax planning strategies during the year. In addition, as a global commercial enterprise, the Company’s tax expense can be impacted by changes in tax rates or laws, the finalization of tax audits and reviews and other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions.
Income tax expense (benefit) was $0.01 million and $0.03 million for the three months ended June 30, 2026 and 2025, respectively, and was $0.1 million and $(0.4) million for the six months ended June 30, 2026 and 2025, respectively. The Company’s effective tax rate of (0.4)% and (2.1)% for the three and six months ended June 30, 2026, differed from the U.S statutory rate primarily due to a benefit for reserves related to uncertain tax positions, partially offset by changes in tax accruals and reserves related to the prior year’s tax matters. The Company’s effective tax rate of 1.2% and 0.8% for the three and six months ended June 30, 2025, was lower than the U.S statutory rate due to the tax effect of goodwill impairment. The effective tax rate for both periods was also impacted by changes in valuation allowances associated with the Company’s assessment of the likelihood of the recoverability of deferred tax assets. |