INCOME TAXES |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| INCOME TAXES | |
| INCOME TAXES | 8. INCOME TAXES The Company calculates its interim income tax provision or benefit under ASC 740, Income Taxes (“ASC 740”) by computing an estimated annual effective tax rate and applying the rate to year-to-date pretax income or loss and adjusting for discrete items including changes to prior-period estimates. For the quarter ended September 30, 2026, the Company excluded the impairment charges from the calculation of its annual effective tax rate pursuant to the provisions of ASC 740-270-30-12. The Company evaluated and concluded that the impairment charges were a significant and infrequently occurring item and excluding the impairment charges from the annual effective tax rate results in the recognition of the tax effect of such charges in the period when they are recorded. For the three months ended September 30, 2026, the effective rate reflects a benefit of 19.2% compared to a provision of 42.6% for the comparable period in the prior year. For the nine months ended September 30, 2026, the effective rate reflects a benefit of 6.5% compared to a provision of 37.7% for the comparable period in the prior year. The change in the effective tax rate was primarily due to the impact of unfavorable permanent differences in relation to a pretax loss in 2026, compared to pretax income in 2025. In addition, the tax effect of the impairment charges totaling approximately $17.1 million was recorded as a discrete item and included in the effective rate for the quarter. |