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Income Taxes
 9 Months Ended
Sep. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes
NOTE 12 — Income Taxes
 Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2022202120222021
Income tax benefit$(3,371)$(1,280)$(2,700)$(716)
Effective tax rateN/M1.1 %14.1 %0.6 %
Three and Nine Months Ended September 30, 2022 v 2021
The increase in tax benefit was primarily driven by adjustments to the outside basis differences as a result of the 2021 tax filings.
As a result of the Secondary Offerings, the Company recorded an additional deferred tax asset, net of valuation allowance, of $130.6 million, which primarily consists of the Company’s outside basis differences in its limited liability company subsidiaries. As of September 30, 2022, the Company recognized deferred tax assets of approximately $293.1 million, net of a valuation allowance of approximately $1.5 million. The Secondary Offerings also resulted in the Company recording additional liability of $114.7 million related to the TRAs. As of September 30, 2022, the Company had a liability of approximately $226.3 million related to its projected obligations under the TRAs in connection with the Secondary Offerings and 2021 reorganization and exchange transactions. TRAs-related liabilities are classified as current or non-current based on the expected date of payment and are included in the Company’s condensed consolidated balance sheets under the captions “Current portion of tax receivable agreements liability” and “Tax receivable agreements liability, net of current portion,” respectively. For additional information, refer to NOTE 1 — Organization and Background.