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Income Taxes

6 Months Ended

Jun. 30, 2021

Note 9 — 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 June 30, 2021, the Company’s U.S. deferred tax assets are fully offset by a valuation allowance since the Company cannot conclude that it is more likely than not that these future benefits will be realized.

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 (loss) before income taxes and income tax expense (benefit) for the three and six months ended June 30, 2021 and 2020 were as follows:


	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020

	(in thousands)
Income (loss) before income taxes	$	6,667	$	(8,251)	$	9,459	$	(8,550)
Income tax expense (benefit)	$	319	$	51	$	617	$	319

The Company’s tax expense for the three months ended June 30, 2021 was $0.3 million, compared to $0.1 million for the comparable prior period. The 2021 tax expense included a $0.1 million expense related to the Company’s domestic operations and a $0.2 million expense related to the Company’s non-U.S. operations, compared to 2020 when the expense included a $0.1 million expense related to the Company’s domestic operations, offset by an immaterial benefit related to the Company’s non-U.S. operations.

The Company’s tax expense for the six months ended June 30, 2021 was $0.6 million, compared to $0.3 million for the comparable prior period. The 2021 tax expense included a $0.2 million expense related to the Company’s domestic operations and a $0.4 million expense related to the Company’s non-U.S. operations, compared to 2020 when the expense included a $0.2 million expense related to the Company’s domestic operations and a $0.1 million expense related to the Company’s non-U.S. operations. The current period domestic tax expense is primarily attributable to the tax amortization of indefinite-lived intangible assets that is not available to offset U.S. deferred tax assets. The current period foreign tax expense is primarily attributable to non-U.S operation profits and foreign withholding taxes on unremitted earnings as of June 30, 2021, offset by the amortization of intangible assets.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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