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INCOME TAX
 9 Months Ended
Sep. 30, 2024
INCOME TAX  
INCOME TAX

NOTE 4.    INCOME TAX

The following table summarizes tax provision (benefit) and the effective tax rate for our income (loss) from continuing operations:

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Three Months Ended September 30, 

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Nine Months Ended September 30, 

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​

    

2024

    

2023

    

2024

    

2023

​

Income (loss) from continuing operations, before income tax

​

$

(14,547)

​

$

34,525

​

$

11,796

​

$

106,263

​

Income tax provision (benefit)

​

$

(400)

​

$

874

​

$

4,552

​

$

13,405

​

Effective tax rate

​

​

(2.7)

%

​

2.5

%

​

38.6

%

​

12.6

%

​

Our effective tax rates differ from the U.S. federal statutory rate of 21% primarily due to the benefit of earnings in foreign jurisdictions which are subject to lower tax rates, as well as tax credits, partially offset by net U.S. tax on foreign operations.

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The previously announced Zhongshan, China factory closure impacted our effective tax rate in both the three and nine months ended September 30, 2024. For the nine months ended September 30, 2024, our effective tax rate was higher than the same period in the prior year due to smaller beneficial discrete items in the current period relative to the larger beneficial discrete items in the prior period.

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As of January 1, 2024, the Pillar II minimum global effective tax rate of 15% enacted by the Organization for Economic Cooperation and Development (“OECD”) was effectuated. More than 140 countries agreed to enact the Pillar II global minimum tax. However, the timing of the implementation for each country varies. To date, we have determined that there was an immaterial global minimum tax liability as a result of Pillar II, as certain tax jurisdictions either will not have Pillar II enacted until after December 31, 2024 or satisfied the safe harbor test to prevent any minimum tax under Pillar II. We continue to monitor the jurisdictions for any changes and include any appropriate minimum tax throughout the year.