Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v3.20.2
Income Taxes
 9 Months Ended
Sep. 30, 2020
Income Tax Disclosure [Abstract]  
Income Taxes
13.
Income Taxes
The Company’s effective tax rate for the three and nine months ended September 30, 2020 was 24.1% and 29.1%, respectively, compared to 26.7% and 27.3%
for the three and nine months ended September 30, 2019, 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 any 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 September 30,     Nine Months Ended September 30,  
     2020     2019     2020     2019  
     Amount     Rate     Amount     Rate     Amount     Rate     Amount     Rate  
Income tax expense at the federal statutory rate
    $ 1,671       21.0 %    $ 5,526       21.0 %    $ 5,689       21.0 %    $ 16,247       21.0 % 
State income tax expense, net of federal benefit
      453       5.7 %      1,118       4.2 %      1,403       5.2 %      3,359       4.3 % 
Shortfall (windfall) tax benefits, net related to stock-based compensation
      130       1.6 %      53       0.2 %      203       0.7 %      (201 )      (0.2 )% 
Change in valuation allowance
      134       1.7 %      408       1.6 %      594       2.2 %      874       1.1 % 
Permanent and other items
(1)
      (472 )      (5.9 )%      (81 )      (0.3 )%      (14 )      —         880       1.1 % 
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
   $ 1,916       24.1 %    $ 7,024       26.7 %    $ 7,875       29.1 %    $ 21,159       27.3 % 
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
(1)
 
Permanent items relate principally to compensation charges, qualified transportation fringe benefits, meals and entertainment and reversal of uncertain tax positions.