ProFrac Holding Corp. Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Summary of Components of Income Tax Expense (Benefit)

The following table summarizes the components of income tax expense (benefit):


	Year Ended December 31,
	2024			2023			2022
Current income taxes:
Federal	$	-		$	(1.1	)	$	1.7
State		3.7			2.2			3.7
Total current		3.7			1.1			5.4

Deferred income taxes:
Federal		(9.6	)		—			3.6
State		(1.1	)		0.1			0.1
Total deferred		(10.7	)		0.1			3.7

Income tax expense (benefit)	$	(7.0	)	$	1.2		$	9.1

Summary of Actual Income Tax Expense (Benefit) Differed From the Amount Computed by Applying the Statutory Federal Income Tax Rate to Income (Loss) Before Income Taxes

Actual income tax expense (benefit) differed from the amount computed by applying the statutory federal income tax rate to income (loss) before income taxes as follows:


	Year Ended December 31,
	2024			2023			2022
Income (loss) before income taxes	$	(214.8	)	$	(58.0	)	$	351.8
Statutory rate	21%			21%			21%
Federal income tax expense (benefit) at statutory rate		(45.1	)		(12.2	)		73.9
State taxes, net of federal benefit		(0.8	)		0.8			9.5
Permanent items		3.4			7.2			13.6
Other		3.6			(1.3	)		(3.2	)
Non-controlling interest		-			(10.7	)		(59.9	)
Business combination adjustment		-			(8.3	)		-
Valuation allowance		31.9			25.7			(24.8	)
Income tax expense (benefit)	$	(7.0	)	$	1.2		$	9.1
Effective tax rate		3.3	%		-2.1	%		2.6	%

Summary of Temporary Differences That Gives Rise to Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below:


	December 31,
	2024			2023
Deferred tax assets:
Net operating loss carryforward	$	147.1		$	162.9
Interest carryforward		31.4			-
Tax receivable agreement		-			74.1
Lease liability		39.8			-
Intangible assets and goodwill		198.6			8.0
Other		31.8			10.4
Gross deferred tax assets		448.7			255.4
Valuation allowance		(139.2	)		(91.1	)
Total deferred tax assets		309.5			164.3

Deferred tax liabilities:
Property, Plant & Equipment		(280.2	)		-
Investment in ProFrac Holdings, LLC		-			(156.5	)
Right-of-use asset and other		(44.2	)		(7.5	)
Total deferred tax liabilities		(324.4	)		(164.0	)

Net deferred tax assets (liabilities)	$	(14.9	)	$	0.3