Income Taxes

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective tax rate for the three months ended June 30, 2021 was (509.1)%, reflecting tax expense of $43.0 million on a pre-tax loss of $8.5 million, compared to 13.6% for the three months ended June 30, 2020, reflecting a tax benefit of $27.7 million on a pre-tax loss of $203.0 million. The effective tax rate for the three months ended June 30, 2021 was negatively impacted by an increase in our net deferred tax liabilities as a result of a state tax apportionment change relating to the purchase of a building in Florida for the relocation of our corporate headquarters and an enacted tax rate change in the U.K. The effective tax rate for the three months ended June 30, 2020 was negatively impacted by a non-deductible expense associated with the fair value adjustment related to the Series A Preferred Stock make-whole derivative liability.

The effective tax rate for the six months ended June 30, 2021 was (78.8)%, reflecting tax expense of $33.2 million on a pre-tax loss of $42.2 million, compared to 50.2% for the six months ended June 30, 2020, reflecting a tax benefit of $101.9 million on a pre-tax loss of $203.6 million. The effective tax rate for the six months ended June 30, 2021 was negatively impacted by an increase in our net deferred tax liabilities as a result of a state tax apportionment change relating to the purchase of a building in Florida for the relocation of our corporate headquarters and an enacted tax rate change in the U.K. The effective tax rate for the six months ended June 30, 2020 was positively impacted by the $53.7 million net benefit resulting from the enactment of The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act” or the “Act”) which allowed for the carryback of federal net operating losses arising in 2018, 2019 or 2020 to each of the five preceding years for which the corporate tax rate for certain years was 35%, as compared to the current 21% tax rate. The aforementioned benefit was partially offset by the impact of non-deductible expense associated with the fair value adjustment related to the Series A Preferred Stock make-whole derivative liability.