Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v3.19.2
Income Taxes
 6 Months Ended
Jun. 30, 2019
Income Tax Disclosure [Abstract]  
Income Taxes
13.
Income Taxes
 
 
 
 
 
 
 
 
 
 
 
 
 
The Company’s effective tax rate for the three and six months ended June 30, 2019 was 28.5% and 27.7%, respectively, compared to 26.9% and 26.4% for the three and six months ended June 30, 2018, respectively. The Company provides for the effects of income taxes in interim financial statements based on the Company’s estimate of its annual effective tax rate for the full year, which is based on forecasted income by jurisdiction where the Company operates, adjusted for the tax effects of items that relate discretely to the period, if any.
The provision for income taxes differs from the amount computed by applying the U.S. federal statutory rate to income before provision for income taxes and consisted of the following (dollars in thousands):
                                                                 
 
Three Months Ended June 30,
   
Six Months Ended June 30,
 
 
2019
   
2018
   
2019
   
2018
 
 
Amount
   
Rate
   
Amount
   
Rate
   
Amount
   
Rate
   
Amount
   
Rate
 
Income tax expense at the federal statutory rate
  $
6,249
     
21.0
 %   $
6,368
     
21.0
 %   $
10,721
     
21.0
 %   $
11,474
     
21.0
 %
State income tax expense, net of federal benefit
   
1,346
     
4.5
 %    
1,415
     
4.7
 %    
2,240
     
4.4
 %    
2,511
     
4.6
 %
Windfall tax benefits, net related to stock-based compensation
   
11
     
—  
      
(28
 )    
(0.1
 )%    
(254
 )    
(0.5
 )%    
(245
 )    
(0.5
 )%
Change in valuation allowance
   
200
     
0.7
 %    
74
     
0.2
 %    
466
     
0.9
 %    
121
     
0.2
 %
Permanent and other items
(1)
    
672
     
2.3
 %    
326
     
1.1
 %    
962
     
1.9
 %    
596
     
1.1
 %
                                                                 
  $
8,478
     
28.5
 %   $
8,155
     
26.9
 %   $
14,135
     
27.7
 %   $
14,457
     
26.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
 Permanent items relate principally to compensation charges, qualified transportation fringe benefits and meals and entertainment.