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Income Tax
 9 Months Ended
Sep. 30, 2022
Income Tax Disclosure [Abstract]  
Income Tax Income Tax
The Company’s effective income tax rates were 27.0% and (8.8)% for the three and nine months ended September 30, 2022, respectively, and (0.4)% and 0.3% for the three and nine months ended September 30, 2021, respectively.
The Company recorded income tax expense of $5.2 million for the three months ended September 30, 2022 and income tax benefit of $5.7 million for the nine months ended September 30, 2022. The Company recorded income tax benefit of $0.1 million and income tax expense of $0.4 million for the three and nine months ended September 30, 2021, respectively.
A valuation allowance on the Company’s deferred tax assets resulted in an annual effective tax rate of less than 1% and lower income tax expense amounts in 2021. During the first quarter of 2022, the Company concluded that it was more likely than not that the Company will generate sufficient taxable income within the applicable net operating loss carry-forward periods to realize a portion of its deferred tax assets, which resulted in a partial reversal of the deferred tax asset valuation allowance. The partial reversal of the deferred tax asset valuation allowance during the first quarter of 2022 resulted in the negative effective income tax rate and income tax benefit for the nine months ended September 30, 2022. The effective income tax rate and the income tax expense for the three months ended September 30, 2022 differed from the federal tax rate of 21% due to the limitation of tax deductions on executive compensation under the Internal Revenue Code Section 162(m).
As of September 30, 2022, the Company’s 2017 and 2018 federal tax returns were under audit by the IRS.
As of September 30, 2022 and December 31, 2021, the Company had no material uncertain tax positions.