Income Taxes

9 Months Ended

Sep. 30, 2022

Income Taxes

Income Taxes

Note 12. Income Taxes

The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the difference is expected to reverse. Additionally, the impact on deferred tax assets and liabilities of changes in tax rates is reflected in the financial statements in the period that includes the date of enactment. The Company reported income tax expense of $0.4 million and $204.6 million for the three months ended September 30, 2022 and 2021, respectively and $4.5 million and $208.3 million for the nine months ended September 30, 2022 and 2021, respectively. The change in income tax expense is primarily related to the inclusion of the gain on sale of the Cleveland and Columbus, Ohio service areas in taxable income for the three and nine months ended September 30, 2021, coupled with a decrease in income for the three and nine months ended September 30, 2022 relating to our smaller footprint following the sales of five service areas in 2021.