Income Taxes |
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Sep. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes | Note 8 — Income Taxes Income taxes are estimated for each of the jurisdictions in which the Company operates. Deferred income taxes reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as the tax effect of carryforwards. Realization of net deferred tax assets is dependent on future taxable income. At the end of each interim reporting period, the effective tax rate is aligned with expectations for the full year. This estimate is used to determine the income tax provision on a year-to-date basis and may change in subsequent interim periods. Income before income taxes and income tax expense for the three and nine months ended September 30, 2026 and 2025 were as follows:
The Company’s income tax expense was $2.2 million and $2.3 million, respectively, for the three and nine months ended September 30, 2026, compared to $1.3 million and $5.2 million, respectively, for the comparable prior periods. For the three and nine months ended September 30, 2026, and 2025, the effective tax rates were favorably impacted by the tax benefits related to Foreign-Derived Deduction Eligible Income and research and development tax credits. Additionally, for the three and nine months ended September 30, 2026, the effective tax rate was also favorably impacted by a discrete income tax benefit resulting from share-based compensation windfall, while for the comparable prior year periods, the effective tax rate was negatively impacted by a discrete income tax expense resulting from the share-based compensation shortfall. |
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