Company: NGVT
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001653477-25-000108
Chunk: 99

Company: Ingevity Corp
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 99
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Note 12: Income Taxes

The effective tax rates, including discrete items, were as follows:Three Months Ended June 30,Six Months Ended June 30,2025202420252024Effective tax rate (1)(2.7)%15.2 %(8.7)%16.4 %_______________(1) The decrease in the effective rate for the three and six months ended June 30, 2025, was primarily due to the goodwill impairment charge within our Advanced Polymers Technologies reportable segment, resulting in an overall book loss with a net tax liability.  We determine our interim tax provision using an Estimated Annual Effective Tax Rate methodology (“EAETR”). 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 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.

21

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

The below table provides a reconciliation between our reported effective tax rates and the EAETR.Three Months Ended June 30,20252024In millions, except percentagesBefore taxTaxEffective tax rate % impactBefore taxTaxEffective tax rate % impactConsolidated operations$(142.7)$3.8 (2.7)%$(334.6)$(50.9)15.2 %Discrete items:Restructuring and other (income) charges, net (1)21.9 5.2 10.0 2.4 (Gain) loss on strategic investments (2)2.5 0.6 (0.1)— Goodwill impairment (3