XML 28 R20.htm IDEA: XBRL DOCUMENT v3.24.3
Income Taxes
 9 Months Ended
Sep. 30, 2024
Income Tax Disclosure [Abstract]  
Income Taxes

Note 10. Income Taxes

The Company is subject to U.S. federal and various state corporate income taxes as well as taxes in foreign jurisdictions where foreign subsidiaries have been established.

The Company recorded an income tax expense (benefit) of $(9.9) million and $5.9 million in the three months ended September 30, 2024 and 2023, respectively. The Company recorded an income tax expense (benefit) of $(1.3) million and $19.5 million in the nine months ended September 30, 2024 and 2023, respectively. The effective tax rate was 2.6% and (65.1)% for the nine months ended September 30, 2024 and 2023. During the nine months ended September 30, 2024, the Company recognized a net discrete tax benefit of $(12.1) million, primarily due to the change in valuation allowance upon completion of the LDF-eBIJ Merger. During the nine months ended September 30, 2023, the Company recognized a net discrete tax expense of 10.7 million, primarily due to audit payments made by its Korean subsidiary with respect to a tax audit assessment made by the Korean tax authority and withholding taxes paid in various countries by its Korean subsidiary.

The Company’s income tax provision for the nine months ended September 30, 2024, is determined using an estimate of the Company’s annual effective tax rate, adjusted for any discrete items reflected in the relevant period. The effective tax rate for the three months ended September 30, 2024 and the nine months ended September 30, 2024, were (98.1)% and 2.6%, respectively. The change in effective tax rate is primarily driven by a discrete item of deferred tax liability recorded to the Company's Japanese subsidiary after the completion of the LDF-eBIJ Merger. The provision for income taxes differs from the amount of income tax computed by applying the U.S. statutory federal tax rate of 21% to the loss before income taxes due to tax benefits not recognized as a result of a full valuation allowance established by the Company and most of its foreign subsidiaries along with a discrete item of deferred tax liability of $18.4 million recorded to its Japanese subsidiary after the completion of the LDF-eBIJ Merger.