Income Taxes

9 Months Ended

Sep. 30, 2022

Income Taxes

Income Taxes

6.     Income Taxes

The Company applies an estimated annual effective tax rate (“ETR”) approach for calculating a tax provision for interim periods, as required under GAAP. The Company recorded an income tax expense of $1.9 million and $1.4 million for the three months ended September 30, 2022 and 2021, respectively. The Company recorded an income tax expense of $5.7 million and $3.4 million for the nine months ended September 30, 2022 and 2021, respectively.

The Company's ETR of (2.3)% and (2.7)% for the three and nine months ended September 30, 2022 differed from the expected U.S. statutory tax rate of 21.0% and was primarily impacted by permanent tax adjustments, state and local current expense, foreign operations, and valuation allowances, including valuation allowances on a portion of the Company’s deferred tax assets on U.S. disallowed interest expense carryforwards created by the provisions of The Tax Cuts and Jobs Act (“TCJA”).

For the three and nine months ended September 30, 2021, the Company’s ETR of (12.2%) and (5.0%) differed from the expected U.S. statutory tax rate of 21.0%, and was primarily impacted by permanent tax adjustments, state and local current expense, foreign operations, and valuation allowances, including valuation allowances on a portion of the Company’s U.S. disallowed interest expense carryforwards created by the provisions of the TCJA.

As of September 30, 2022, there were no material changes to either the nature or the amounts of the uncertain tax positions previously determined for the year ended December 31, 2021.