Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v3.22.2
Income Taxes
 6 Months Ended
Jun. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income TaxesFor the three and six months ended June 30, 2022, the benefit from income taxes was $4.0 million and $6.9 million, respectively. The effective tax rate was 63.6% and 14.6% for these same periods, respectively. For the three and six months ended June 30, 2021, the benefit from income taxes was $20.9 million and $46.9 million, respectively. The effective tax rate was 21.5% and 17.0% for these same periods, respectively. The effective tax rate applied to our pre-tax loss for the three months ended June 30, 2022 is higher than our federal statutory rate of 21% and reflects a decrease in the projected valuation allowance associated with certain of our deferred tax assets compared to the three months ended March 31, 2022, partially offset by deductibility limitations associated with executive compensation. The effective tax rate applied to our pre-tax loss for the six months ended June 30, 2022 is lower than our federal statutory rate of 21% and reflects deductibility limitations associated with executive compensation.Management regularly evaluates the future realization of deferred tax assets and provides a valuation allowance, if considered necessary, based on such evaluation. As part of the evaluation, management has evaluated taxable income in carryback years, future reversals of taxable temporary differences, feasible tax planning strategies and future expectations of income. Based upon this analysis, a decrease to the valuation allowance of $3.4 million was recorded during the three months ended June 30, 2022 to adjust our net deferred tax assets to an amount that is more likely than not to be realized.