Company: NGVT
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001653477-25-000091
Chunk: 34

Company: Ingevity Corp
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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ETR 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.

20

INGEVITY CORPORATIONNotes to the Condensed Consolidated Financial StatementsMarch 31, 2025(Unaudited)

The below table provides a reconciliation between our reported effective tax rates and the EAETR.Three Months Ended March 31,20252024In millions, except percentagesBefore taxTaxEffective tax rate % impactBefore taxTaxEffective tax rate % impactConsolidated operations$26.8 $6.3 23.5 %$(71.9)$(15.9)22.1 %Discrete items:Restructuring and other (income) charges, net (1)12.3 2.9 64.8 15.1 (Gain) loss on strategic investments (2)— — 4.8 1.1 Proxy contest charges (3)7.9 1.8 — — Other tax only discrete items— (0.4)— (0.9)Total discrete items20.2 4.3 69.6 15.3 Consolidated operations, before discrete items$47.0 $10.6 $(2.3)$(0.6)EAETR (4)22.6 %24.2 %_______________(1) See Note 11 for further information. For the three months ended March 31, 2024, the charge includes $2.5 million of lower of cost or market charges associated with the Performance Chemicals repositioning. Amounts are included in "Cost of sales" on the condensed consolidated statements of operations.(2) See Note 4 for further information. (3) See Note 14 for further information. (4