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INCOME TAXES
9 Months Ended
Sep. 30, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
For the three months ended September 30, 2022 and 2021, we recorded an income tax provision of $3.4 million on income before taxes of $20.1 million, and a provision of $0 on a loss before taxes of $10.9 million, respectively. For the nine months ended September 30, 2022 and 2021, we recorded an income tax provision of $3.4 million on income before taxes of $1.4 million, and an income tax provision of $0 on a loss before taxes of $25.1 million, respectively. The effective tax rates were 17.0% and 0% for the three months ended September 30, 2022 and 2021, respectively, and 253.3% and 0% for the nine months ended September 30, 2022 and 2021, respectively. The increase in the income tax provision of $3.4 million for the three and nine months ended September 30, 2022 was primarily related to deferred tax effects related to the gain on dilution of our interests in certain equity method investments. See Note 3—Equity Method Investments in Unconsolidated Affiliates for further discussion.
We continually review the adequacy of our valuation allowance and intend to continue maintaining a full valuation allowance on our net deferred tax assets where there is not sufficient evidence to support reversal of all or a portion of the allowance. As of September 30, 2022, we reached the conclusion that, as a result of the gain on dilution in our equity method investments, our valuation allowance on certain Australian deferred tax assets is no longer necessary, and therefore, recorded a valuation allowance release of $4.0 million. We continue to maintain a full valuation allowance against our U.S. federal and state deferred tax assets. Should our assessment change in a future period, we may release all or a portion of the valuation allowance at such time, which would result in a deferred tax benefit in the period of adjustment.