Income Taxes

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company recognized income tax expense of $5.9 million and $7.8 million for the three and six months ended June 30, 2021, respectively. In comparison, the Company recognized an income tax benefit of $5.1 million and $5.2 million for the three and six months ended June 30, 2020, respectively.

The Company calculates its provision for (benefit from) income taxes during interim reporting periods by applying an estimate of the annual effective tax rate to its year-to-date pretax book income or loss. The effective tax rate (income taxes as a

percentage of income before income taxes) was 32.2% and 36.0% for the three and six months ended June 30, 2021, respectively. In comparison, the Company’s effective income tax rate was 9.8% and 132.5% for the three and six months ended June 30, 2020, respectively. The Company’s effective income tax rate can vary from period to period depending on, among other factors, the amount of permanent tax adjustments and discrete items. The tax rate in 2020 was also impacted by the forecast of a net loss for the year, and the nondeductible gains/losses related to the revaluation of the Company's contingent earnout shares and warrants, which are treated as discrete items and caused variability in the effective income tax rates for the three and six months ended June 30, 2020.On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law and authorized more than $2 trillion to battle COVID-19 and its economic effects, including immediate cash relief for individual citizens, loan programs for small business, support for hospitals and other medical providers, and various types of economic relief for impacted businesses and industries. The Company was eligible for certain credits of the relief programs under the CARES Act and has recorded a receivable of $1.1 million on its condensed consolidated balance sheets. The Company will continue to monitor the situation and evaluate any additional future legislation.