Company: TISI
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0000318833-25-000057
Chunk: 32

Company: TEAM INC
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 accruals primarily relate to workers compensation cost. Property, sales and other non-income related taxes include accruals for items such as sales and use tax, property tax, and other related tax accruals. Accrued interest relates to the interest accrued on our long-term debt. Other accruals include various business expense accruals.

9. INCOME TAXES

We recorded an income tax provision of $1.0 million and $1.2 million for the three and six months ended June 30, 2025, compared to a provision of $1.5 million and $1.5 million for the three and six months ended June 30, 2024. The effective tax rate, inclusive of discrete items, was a provision of 29.9% for the three months ended June 30, 2025, compared to a provision of 114.0% for the three months ended June 30, 2024. For the six months ended June 30, 2025, our effective tax rate, inclusive of discrete items, was a provision of 3.7%, compared to a provision of 8.4% for the six months ended June 30, 2024. The decrease in effective tax rate for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 is due to the mix of pretax income in non-valuation allowance jurisdictions and pretax losses in valuation allowance jurisdictions, along with changes in permanent differences. The impact is a smaller increase in income tax expense as compared to pretax income resulting in a decrease in effective tax rate. On July 4, 2025, the “One Big Beautiful Bill Act” (the “Act”) was enacted into law. The Act includes changes to U.S. tax law with varying effective dates, with certain provisions effective in 2025 and others implemented through 2027. We are 

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currently assessing its impact on our consolidated financial statements. Additional disclosures may be provided in future periods as the impact of the legislation is determined.

  10. DEBT

As of June 30, 2025 and December 31, 2024, our total long-term debt and finance lease obligations are summarized as follows (in thousands):June 30, 2025December 31, 2024(unaudited)2022 ABL Credit Agreement$97,886 $112,671