INCOME TAXES

3 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

At the end of each interim period, the Company estimates the effective tax rate expected to be applicable for the full fiscal year and this rate is applied to the results for the year-to date period, and then adjusted for any discrete period items.

For the three month period ended March 31, 2024, the Company calculated an annual effective tax rate of 0% on pre-tax book loss of $17.9 million and booked total tax expenses of $0.

For the three month period ended March 31, 2023, the Company calculated an annual effective tax rate of 26% on pre-tax income of $4.5 million and recognized income tax expense of $1.0 million on continued operations.

The Company also recognized income tax expense of $17.7 million on discontinued operations for the three months ended March 31, 2023, refer to “Note 22. Discontinued Operations” for more information.

For the three-month period ended March 31, 2024, the variance between the Company’s effective tax rate and the U.S. statutory rate of 21% is primarily attributable to the change in valuation allowance, non-deductible expenses and income attributable to non-controlling interest. The tax expense for the three month ended March 31, 2023, was primarily related to discrete items.