Company: NGVT
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001653477-25-000015
Chunk: 1224

Company: Ingevity Corp
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 1224
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3 0.5 2.6 Other1.6 1.4 1.1 Provision (benefit) for income taxes$(105.3)$(4.7)$58.0 Effective tax rate19.7 %46.5 %21.5 %_______________(1) GILTI is defined as Global Intangible Low Tax IncomeThe decrease in our effective tax rate from 2023 to 2024 was mainly driven by the mix of earnings, with extensive U.S. losses, primarily due to the Performance Chemicals goodwill impairment (see Note 8) and restructuring activities (see Note 15), driving an overall global loss and tax benefit for the year. Approximately 31% of the goodwill impaired had an impact to the tax rate, offsetting the overall tax benefit. Significant increases in federal and state tax credits further increased the overall tax benefit as compared to prior years.  The increase in our effective tax rate from 2022 to 2023 was mainly driven by the mix of earnings, with U.S. losses, primarily due to the restructuring activities during the year (see Note 15), driving an overall global loss and tax benefit for the year. Furthermore, significant decline in U.S. taxable earnings drove a decrease in the foreign derived intangible income benefit as compared to prior years skewing the effective tax rate. 

95

IndexIngevity CorporationNotes to the Consolidated Financial StatementsDecember 31, 2024

The significant components of deferred tax assets and liabilities are as follows:December 31,In millions20242023Deferred tax assets:Employee benefits$15.4 $13.3 Intangibles (including goodwill)30.5 — Net operating losses18.6 10.6 Inventory11.2 16.9 Leases15.8 18.7 Litigation verdict accrual21.4 20.5 Research and experimental expenses29.9 15.3 Interest limitation24.5 7.6 Other21.8 16.3 Total deferred tax assets$189.1 $119.2 Valuation allowance(11.0)(11.1)Total deferred tax assets, net of valuation allowance$178.1 $108.1 Deferred tax liabilities:Fixed assets$96.9 $115.9 Intangibles (including goodwill)— 29.3 Leases14.6 18.