Company: NGVT
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001653477-25-000127
Chunk: 38

Company: Ingevity Corp
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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ETR"). The EAETR is applied to the year-to-date ordinary income, exclusive of discrete items. The tax effects of discrete items are then included to arrive at the total reported interim tax provision.The determination of the EAETR is based upon a number of estimates, including the estimated annual pre-tax ordinary income in each tax jurisdiction in which we operate. As our projections of ordinary income change throughout the year, the EAETR will change period-to-period. The tax effects of discrete items are recognized in the tax provision in the period they occur. Depending on various factors, such as the item's significance in relation to total income and the rate of tax applicable in the jurisdiction to which it relates, discrete items in any quarter may materially impact the reported effective tax rate. As a 

23

INGEVITY CORPORATIONNotes to the Condensed Consolidated Financial StatementsSeptember 30, 2025(Unaudited)

global enterprise, our tax expense may be impacted by changes in tax rates or laws, the finalization of tax audits and reviews, as well as other factors. As such, there may be significant volatility in interim tax provisions.The below table provides a reconciliation between our reported effective tax rates and the EAETR of our continuing operations.Three Months Ended September 30,20252024In millions, except percentagesBefore taxTaxEffective tax rate % impactBefore taxTaxEffective tax rate % impactContinuing operations$62.2 $21.4 34.4 %$54.0 $6.5 12.0 %Discrete items:Restructuring and other (income) charges, net (1)1.0 0.3 2.0 0.5 (Gain) loss on strategic investments (2)— — 2.2 0.5 Other tax only discrete items— (1.7)— 7.0 Total discrete items1.0 (1.4)4.2 8.0 Continuing operations, before discrete items$63.2 $20.0 $58.2 $14.5 EAETR (5)31.6 %24.9 %Nine Months Ended September 30,20252024In millions, except percentagesBefore taxTaxEffective tax rate % impactBefore taxTaxEffective tax rate % impactContinuing operations$(36.7)$34.8 (94.8)%$(164.6)$(23.6)14.3 %