Company: ARRY
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001820721-25-000060
Chunk: 75

Company: Array Technologies, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 75
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 intangibles436,292 430,786 Accumulated amortization:Developed technology127,101 123,462 Computer software14,662 14,552 Customer relationships108,309 102,541 Backlog17,630 16,877 Trade name2,543 2,245 Total accumulated amortization270,245 259,677 Total amortizable intangibles, net166,047 171,109 Non-amortizable:Trade name10,300 10,300 Total other intangible assets, net$176,347 $181,409 Amortization expense related to intangible assets was $8.5 million and $12.9 million 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