XML 25 R15.htm IDEA: XBRL DOCUMENT v3.23.3
Income Taxes
 9 Months Ended
Sep. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Three months ended September 30,Nine months ended September 30,
(in thousands)2023202220232022
Income before income taxes from continuing operations$38,385 $34,719 $77,802 $163,479 
Income tax provision from continuing operations7,862 9,839 23,710 29,695 
Effective tax rate from continuing operations20.5 %28.3 %30.5 %18.2 %

On a quarterly basis, the Company estimates the effective tax rate expected to be applicable for the full year and makes changes, if necessary, based on new information or events. The estimated annual effective tax rate is forecasted based on actual historical information and forward-looking estimates and is used to provide for income taxes in interim reporting periods. The Company also recognizes the tax impact of certain unusual or infrequently occurring items, such as the effects of changes in tax laws or rates and impacts from settlements with tax authorities, discretely in the quarter in which they occur.

The difference between the 20.5% effective tax rate and the U.S. federal statutory tax rate of 21.0% for the three months ended September 30, 2023 is primarily attributable to the tax impact of non-controlling interest offset by state and local income taxes, nondeductible compensation, and other discrete tax adjustments. The difference between the 30.5% effective tax rate and the U.S. federal statutory tax rate of 21.0% for the nine months ended September 30, 2023 is primarily attributable to the tax impact of non-controlling interest, state and local income taxes, nondeductible compensation and other discrete tax adjustments. Other discrete tax items include a net income tax benefit of $10.6 million recorded on a net loss before taxes of $88.8 million related to the current year operations, impairment charge, and gain on deconsolidation associated with ELEMENT.

The difference between the 28.3% effective tax rate and the U.S. federal statutory rate of 21.0% for the three months ended September 30, 2022 is due to the tax impact of non-controlling interest and state and local income taxes. The difference between the 18.2% effective tax rate and the U.S. federal statutory rate of 21.0% for the nine months ended September 30, 2022 is due to the tax impact of non-controlling interest as well as certain discrete derivatives and hedging activities offset by state and local income taxes and nondeductible compensation.