Income Taxes

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company recognized an income tax benefit for the three months ended March 31, 2023 of $48.1 million resulting in an effective income tax rate of 49.6%. The effective income tax rate was higher than the 21% federal statutory rate primarily due to the pre-tax loss for the period and projected for the year. In periods reporting pre-tax losses, a tax benefit increases the effective income tax rate because it increases the tax benefit generated from the pre-tax loss. The tax benefits that caused a higher effective tax rate were primarily the earnings attributable to noncontrolling interests (for which income taxes are not the responsibility of the Company) and state income taxes (net of the federal tax benefit), partially offset by non-deductible expenses.

For the three months ended March 31, 2022, the Company recognized an income tax benefit of $3.9 million with an effective income tax rate of 17.1%. The Company incurred a pre-tax loss for the quarter, but projected a pre-tax profit for the year and, as a result, tax benefits reduced the effective tax rate. The effective income tax rate was lower than the 21% federal statutory rate primarily due to earnings attributable to noncontrolling interests, for which income taxes are not the responsibility of the Company, partially offset by state income taxes (net of the federal tax benefit).

The Company had deferred tax assets of $97.4 million and $15.9 million at March 31, 2023 and December 31, 2022, respectively, which are included in other assets on the Condensed Consolidated Balance Sheets.