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Income Tax Provision
 9 Months Ended
Sep. 30, 2024
Income Tax Disclosure [Abstract]  
Income Tax Provision

Note 5 - Income Tax Provision

Metallus’ provision for income taxes in interim periods is computed by applying the appropriate estimated annual effective tax rates to income or loss before income taxes for the period. In addition, non-recurring or discrete items, including interest on prior-year tax liabilities, are recorded during the periods in which they occur.

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Provision (benefit) for incomes taxes

 

$

(1.2

)

 

$

9.8

 

 

$

6.3

 

 

$

24.6

 

Effective tax rate

 

 

16.9

%

 

 

28.3

%

 

 

21.7

%

 

 

26.5

%

 

Income tax expense for the three months ended September 30, 2024 was calculated using forecasted multi-jurisdictional annual effective tax rates to determine a blended annual effective tax rate. The effective tax rate for the three and nine months ended September 30, 2024 was 16.9%% and 21.7%, respectively, compared to a rate of 28.3% and 26.5% for the prior year. The decrease in the effective tax rate is primarily related to lower income before income taxes for the three and nine months ended September 30, 2024. In addition to lower income before income taxes, the decrease for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 is also impacted by the deductibility of the loss on extinguishment of debt on the Convertible Senior Notes due 2025 and a state net operating loss discrete adjustment that both impacted 2023.

For the nine months ended September 30, 2024, Metallus made $21.5 million in U.S. federal tax payments, $6.1 million in state and local tax payments, and $0.2 million in foreign tax payments. For the nine months ended September 30, 2023, Metallus made $17.0 million in U.S. federal payments, $3.4 million in state and local tax payments, and $1.2 million in foreign tax payments.