Company: ARRY
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001820721-25-000060
Chunk: 32

Company: Array Technologies, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 32
---
 for the three months ended March 31, 2025 and 2024, respectively, of which $3.6 million was included in amortization of developed technology, a component of cost of revenue, in both periods and $4.9 million and $9.3 million, respectively, was included in depreciation and amortization, on the accompanying condensed consolidated statements of operations.

13

Estimated future amortization expense of intangible assets as of March 31, 2025, is as follows (in thousands):AmountRemainder of 2025$26,777 202629,980 202725,232 202825,232 202925,232 Thereafter33,594 $166,047 

6.    Income Taxes 

The Company follows guidance under ASC Topic 740-270 Income Taxes, which requires that an estimated annual effective tax rate is applied to year-to-date ordinary income (loss). At the end of each interim period, the Company estimates the effective tax rate expected to be applicable for the full fiscal year. The tax effect of discrete items is recorded in the quarter in which the discrete events occur.The Company recorded income tax expense of $6.5 million and $1.3 million for the three months ended March 31, 2025 and 2024, respectively. The income tax expense for the three months ended March 31, 2025 was favorably impacted by lower profits in non-US jurisdictions and additional tax credits recorded during the period. Additionally, tax expense of $1.0 million related to equity-based compensation was recorded discretely. The tax expense for the three months ended March 31, 2024, was impacted by higher income reported in non-U.S. jurisdictions, and a tax expense of $0.4 million related to equity-based compensation recorded discretely.As of March 31, 2025 and 2024, the balance of reserves for uncertain tax positions was $0.7 million and zero, respectively.

14

7.    Debt 

The following table summarizes the Company’s total debt (in thousands):March 31, 2025December 31, 2024Senior Secured Credit Facility:Term loan facility$232,800 $233,875 Revolving credit facility— — Total secured credit facility232,800 233,875 Convertible notes425,000 425,000 Other debt35,527 34,042 Total principal693,327 692