Income Taxes

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Note 18. Income Taxes

The effective tax rate was 2.6% for the three months ended March 31, 2023 and 7.8% for the three months ended March 31, 2022.

The income tax provision was computed based on our estimated annualized effective tax rate and the full-year forecasted income or loss plus the tax impact of unusual, infrequent, or nonrecurring significant items during the period. During the three months March 31, 2023, we released the valuation allowance of $2.1 million that was recorded on deferred tax assets associated with certain separate states,

which more than offset taxes due in jurisdictions without a valuation allowance. The rates were lower than the 21% federal rate for both three months ended March 31, 2023 and 2022 as a result of excluding the tax benefit in jurisdictions with a valuation allowance.

We paid net cash for income taxes of $8.0 million during the three months ended March 31, 2023, of which $7.3 million was paid to Canadian taxing authorities. We paid net cash for income taxes of $1.4 million during the three months ended March 31, 2022.