INCOME TAXES |
9 Months Ended |
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Sep. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | INCOME TAXES For the three months ended September 30, 2026, the Company recognized an income tax benefit of approximately $27.0 million, on a loss before income taxes of approximately $3.6 million, compared to an income tax provision of approximately $10.4 million, on income before income taxes of approximately $77.0 million for the three months ended September 30, 2025. For the nine months ended September 30, 2026, the Company recognized an income tax benefit of approximately $7.6 million, on income before income taxes of approximately $44.5 million, compared to an income tax provision of approximately $32.7 million, on income before income taxes of approximately $166.1 million for the nine months ended September 30, 2025. The income tax benefit for the three months ended September 30, 2026 was calculated using the annualized effective tax rate method and primarily includes the tax benefits attributable to the impact of AMPTC under Section 45X of the Internal Revenue Code of 1986, as amended (the “Code”), the cumulative rate catch-up that represents the tax effects resulting from remeasurement of annualized effective tax rate based on the lower forecasted annual pre-tax income, and tax benefit related to the impairment of multiple debt securities investment, partially offset by the tax expense from profitable foreign jurisdictions and tax expense related to equity-based compensation shortfalls. AMPTC is generated based on qualifying production and shipment activity and is therefore directly related to the Company’s pretax income; however, the AMPTC is treated as permanent items for income tax accounting purposes and is excluded from the calculation of the annualized effective tax rate. For the nine months ended September 30, 2026, the income tax benefit was calculated using the annualized effective tax rate method and primarily reflects tax benefits attributable to the impact of AMPTC under Section 45X of the Code and tax benefit related to the impairment of multiple debt securities investment, offset by tax expense in profitable foreign jurisdictions and tax expense related to equity-based compensation shortfalls and the tax effects of the IEEPA tariff refund. For the three and nine months ended September 30, 2025, the income tax provision was calculated using the annualized effective tax rate method and was primarily due to tax expense in U.S. and foreign jurisdictions that are profitable, tax expense from equity compensation shortfalls, and prior year true up adjustments. In accordance with ASC 740‑270, the Company computed its provision for income taxes based on a projected annual effective tax rate, excluding the effects of permanent items and losses generated in jurisdictions for which realization of the related tax benefits is not considered more likely than not. As a result, the Company’s effective tax rate may differ significantly from the U.S. federal statutory rate and may not be indicative of the Company’s annual effective tax rate. In March 2026, the Company revoked its direct pay election and made a transfer election on its timely filed 2025 federal income tax return to sell $235.0 million of AMPTC generated during 2025 to a third party. In 2026, the Company also agreed to sell $150.0 million of AMPTC generated during 2026. The transfer election did not have a material impact on the income tax provision for the three and nine months ended September 30, 2026. Refer to Note 7, “Government Grants” for additional information.
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