Income Taxes |
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Income Taxes | 15. Income Taxes The Company is subject to U.S. federal and state income taxes. The income tax provision for interim periods reflects the Company’s estimate of the annual effective tax rate expected to be applicable for the full fiscal year, adjusted for any discrete events which are recorded in the period in which they occur. The following table presents information regarding the Company’s income tax expense recognized for the three and six months ended June 30, 2024 and 2023:
The provision for income taxes for the three and six months ended June 30, 2024 reflects the estimated annual effective tax rate as adjusted for the discrete nondeductible costs associated with the debt extinguishment that occurred during the three months ended June 30, 2024, partially offset by discrete excess tax benefits from stock-based compensation awards. The non-deductible costs from the debt extinguishment that occurred during the three and six months ended June 30, 2024 were $6,868. The provision for income taxes for the three months ended June 30, 2023 reflects the estimated annual effective tax rate. The provision for income taxes for the six months ended June 30, 2023 was impacted by discrete nondeductible costs associated with the debt extinguishment that occurred in the three months ended March 31, 2023, partially offset by discrete excess tax benefits related to stock-based compensation awards. The nondeductible costs from the debt extinguishment that occurred in the three months ended March 31, 2023 were $21,238. The Company provides a valuation allowance when it is more likely than not that deferred tax assets will not be realized. In determining the extent to which a valuation allowance for deferred tax assets is required, the Company evaluates all available evidence including projections of future taxable income, carry back opportunities, reversal of certain deferred tax liabilities, and other tax planning strategies. The Company has maintained a valuation allowance on the portion of its deferred tax assets that are not more likely than not to be realized due to tax limitation or other conditions as of June 30, 2024. |