Income Taxes

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

9. Income Taxes

The Company computes its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year-to-date pretax income or loss and adjusts the provision for discrete tax items recorded in the period. A valuation allowance has been established against the Company’s U.S. federal and state deferred tax assets, which results in an annualized effective tax rate for the Company’s U.S. operations of 0%. For the three months ended March 31, 2022, the Company recorded an income tax provision of $0.03 million on a pretax loss of $9.6 million related to foreign tax activity, resulting in an effective tax rate of (0.3)%. For the three months ended March 31, 2021, the Company recorded an income tax provision of $0.02 million on a pretax loss of $27.1 million related to foreign tax activity, resulting in an effective tax rate of (0.07)%. These effective tax rates differ from the U.S. federal statutory rate primarily due to the valuation allowance against the Company’s domestic deferred tax assets.