Income taxes |
9 Months Ended |
|---|---|
Sep. 30, 2022 | |
| Income Tax Disclosure [Abstract] | |
| Income taxes | Income taxesFor interim reporting periods, the Company’s provision for income taxes is calculated using its annualized estimated effective tax rate for the year. This rate is based on its estimated full-year income and the related income tax expense/benefit for each jurisdiction in which the Company operates. Changes in the geographical mix, permanent differences or the estimated level of annual pre-tax income can affect the effective tax rate. This rate is adjusted for the effects of discrete items occurring in the period.Provision (benefit) for income taxesThe provision for income taxes was $14.0 million and $20.1 million for the three and nine months ended September 30, 2022, respectively. The benefit for income taxes was $0.2 million for the three months ended September 30, 2021 and the provision for income taxes was $0.7 million for the nine months ended September 30, 2021. The effective tax rate for the nine months ended September 30, 2022 of (28.60)% differed from the expected U.S. statutory tax rate of 21% primarily due to the impact of the valuation allowance recorded against all of the deferred tax assets of F45 Training Inc., withholding taxes, state taxes, the foreign tax rate differential and by current period losses incurred by F45 Holdings Inc. not benefited due to its full valuation allowance. The effective tax rate for the nine months ended September 30, 2021 of (0.35)% differed from the U.S. statutory tax rate of 21% primarily due to state taxes, the foreign tax rate differential, and by current period losses incurred by F45 Holdings Inc. not benefited due to its full valuation allowance. |