Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.23.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Summary of Components of Income Tax Expense (Benefit)

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

 

 

Year Ended December 31,

 

 

 

2022

 

 Current income taxes:

 

 

 

Federal

 

$

1.7

 

State

 

 

3.7

 

Total current

 

 

5.4

 

 

 

 

 

 Deferred income taxes:

 

 

 

Federal

 

 

3.6

 

State

 

 

0.1

 

Total deferred

 

 

3.7

 

 

 

 

 

Income tax expense

 

$

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:

 

 

December 31, 2022

 

Income before income taxes

 

$

351.8

 

Statutory rate

 

21%

 

Federal income tax expense at statutory rate

 

 

73.9

 

State taxes, net of federal benefit

 

 

9.5

 

Permanent items

 

 

13.6

 

Other

 

 

(3.2

)

Non-controlling interest

 

 

(59.9

)

Valuation allowance

 

 

(24.8

)

Income tax expense

 

$

9.1

 

Effective tax rate

 

 

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,

 

 

 

2022

 

 Deferred tax assets:

 

 

 

Net operating loss carryforward

 

$

93.1

 

Investment in ProFrac Holdings, LLC

 

 

19.3

 

Tax receivable agreement

 

 

18.1

 

Flotek net operating loss and tax credit carryforwards

 

 

45.3

 

Flotek intangible assets and goodwill

 

 

9.0

 

Flotek other

 

 

12.1

 

Gross deferred tax assets

 

 

196.9

 

Valuation allowance

 

 

(195.6

)

Total deferred tax assets

 

 

1.3

 

 

 

 

 

Deferred tax liabilities:

 

 

 

Flotek right-of-use asset and other

 

 

(0.9

)

Total deferred tax liabilities

 

 

(0.9

)

 

 

 

 

Net deferred tax assets

 

$

0.4