Income Taxes

3 Months Ended

Mar. 31, 2024

Income Taxes

Income Taxes

15.  Income Taxes

For the three months ended March 31, 2024, we recorded an income tax expense of $7 million on pre-tax loss of $19 million compared to an income tax benefit of $16 million on pre-tax loss of $374 million for the three months ended March 31, 2023. Our effective income tax rate was (40.8%) and 4.3% for the three months ended March 31, 2024 and 2023, respectively.

For the three months ended March 31, 2024, the effective tax rate was lower than the statutory federal rate of 21%, for corporations, primarily due to partnership loss for which there was no tax benefit as such losses are allocated to the

partners. For the three months ended March 31, 2023, the effective tax rate was lower than the statutory federal rate of 21%, for corporations, primarily due to partnership loss for which there was no tax expense, as such losses are allocated to the partners and from changes in the valuation allowance.