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Income Taxes
 6 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes

11. Income Taxes

For the three months ended June 30, 2023 and 2022, the Company recognized an income tax expense of $5.2 million on a pre-tax income of $6.3 million and income tax expense of $0.4 million on a pre-tax loss of $33.6 million, respectively, resulting in effective tax rates of 82.4% and -1.3%, respectively. The effective tax rate for the three months ended June 30, 2023 varies from the U.S. federal statutory tax rate of 21% due to federal and state income tax expense as a result of current taxable income, offset by valuation allowance. The effective tax rate for the three months ended June 30, 2022 varies from the U.S. federal statutory tax rate of 21% due to state income tax expense as a result of current taxable income, offset by valuation allowance.

For the six months ended June 30, 2023 and 2022, the Company recognized an income tax expense of $3.3 million on a pre-tax loss of $38.6 million and income tax expense of $0.9 million on a pre-tax loss of $146.1 million, respectively, resulting in effective tax rates of -8.6% and -0.6%, respectively. The effective tax rate for the six months ended June 30, 2023 varies from the U.S. federal statutory tax rate of 21% due to federal and state income tax expense as a result of current taxable income, offset by valuation allowance. The effective tax rate for the six months ended June 30, 2022 varies from the U.S. federal statutory tax rate of 21% due to state income tax expense as a result of current taxable income, offset by valuation allowance.

The Company calculated the provision for income taxes for the three and six months ended June 30, 2023 using a discrete effective tax rate method as the annual effective tax rate method would not provide a reliable estimate. For the three and six months ended June 30, 2022, the Company calculated the provision for income taxes by applying an estimate of the annual effective tax rate for the full year to ordinary income (loss) adjusted by the tax impact of discrete items.