Income Taxes |
9 Months Ended |
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Sep. 30, 2024 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | 9. Income Taxes The Company computes its provision for interim periods by applying its estimated annual effective tax rate to its anticipated net (loss) income and adjustments for discrete items in the period. The Company’s effective tax rate for the three months ended September 30, 2024 differs from the U.S. federal statutory income tax rate of 21% primarily due to benefits from filings in foreign jurisdictions and valuation allowance in the U.S. The Company's effective tax rate for the three months ended September 30, 2023 differs from the U.S. federal statutory income tax rate of 21% primarily due to the valuation allowance in the U.S. The Company’s effective tax rates for the nine months ended September 30, 2024 and 2023 were less than the U.S. federal statutory income tax rate of 21% primarily due to the valuation allowance in the U.S. The Company’s effective tax rate was 47.2% and (0.3)% for the three months ended September 30, 2024 and 2023, respectively, and the Company’s effective tax rate was (0.3)% and (0.6)% for the nine months ended September 30, 2024 and 2023, respectively. The current period tax expense reflects the impact of the capitalization of research and development expenditures in accordance with Internal Revenue Code (“IRC”) Section 174, partially offset by excess tax benefits related to stock-based compensation and filings in foreign jurisdictions. Deferred income taxes reflect the impact of carryforwards and temporary differences between the amounts of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws. The carryforwards and temporary differences give rise to a significant portion of the Company’s deferred tax assets and liabilities. The Company continues to maintain a valuation allowance against its deferred tax assets in the U.S. The Company has not recognized any liabilities for uncertain tax positions or unrecognized benefits as of September 30, 2024 and December 31, 2023. The Company does not expect any material change in uncertain tax benefits within the next 12 months. As of September 30, 2024, the Company has had an immaterial amount of earnings from its wholly-owned non-U.S. subsidiaries indefinitely reinvested outside the U.S. The Company does not intend to repatriate these earnings or realize the outside basis differences in its foreign subsidiaries and, accordingly, the Company has not provided any taxes for those amounts, given the indefinite reinvestment, and it is not practicable to estimate the amount of deferred tax liability that would be incurred.
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