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Income Taxes
 6 Months Ended
Jun. 30, 2022
Income Taxes  
Income Taxes

9. Income Taxes

 

The Company computes its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year-to-date pretax income or loss and adjusts the provision for discrete tax items recorded in the period. A valuation allowance has been established against the Company’s U.S. federal and state deferred tax assets, which results in an annualized effective tax rate for the Company’s U.S. operations of 0%. For the three months ended June 30, 2022, the Company recorded an income tax benefit of $0.01 million related to foreign tax activity on a pretax income of $0.8 million, resulting in an effective tax rate of 0.98%. For the three months ended June 30, 2021, the Company recorded an income tax provision of $0.01 million related to foreign tax activity on a pretax loss of $39.0 million, resulting in an effective tax rate of 0.03%. For the six months ended June 30, 2022, the Company recorded an income tax provision of $0.03 million related to foreign tax activity on a pretax loss of $8.9 million, resulting in an effective tax rate of 0.29%. For the six months ended June 30, 2021, the Company recorded an income tax provision of $0.03 million related to foreign tax activity on a pretax loss of $66.0 million, resulting in an effective tax rate of 0.04%. These effective tax rates differ from the U.S. federal statutory rate primarily due to the valuation allowance against the Company’s domestic deferred tax assets.