Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v3.21.2
Income Taxes
 9 Months Ended
Sep. 30, 2021
Income Tax Disclosure [Abstract]  
Income Taxes
11.
Income Taxes
The Company’s effective tax rate for the three and nine months ended September 30, 2021 was 26.0% and 26.7%, respectively, compared to 24.1% and 29.1%, respectively, for the three and nine months ended September 30, 2020. 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,
 
 
  
2021
 
 
2020
 
 
2021
 
 
2020
 
 
  
Amount
 
 
Rate
 
 
Amount
 
 
Rate
 
 
Amount
 
 
Rate
 
 
Amount
 
 
Rate
 
Income tax expense at the federal statutory rate
    $ 9,627    
 
 		 21.0 %    $  1,671      
 
 21.0 %    $  23,052       21.0 %    $  5,689    
 
 		 21.0 % 
State income tax expense, net of federal benefit
      2,111       4.6 %      453       5.7 %      5,157       4.7 %      1,403       5.2 % 
(Windfall) shortfall tax benefits, net related to stock-based compensation
      (443 )      (1.0 )%      130       1.6 %      (522 )      (0.5 )%      203       0.7 % 
Change in valuation allowance
      55       0.1 %      134       1.7 %      243       0.2 %      594       2.2 % 
Permanent and other items
(1)
      571       1.3 %      (472 )      (5.9 )%      1,374       1.3 %      (14 )      —    
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
     $
 
  11,921       26.0 %    $
 
 1,916       24.1 %    $
 
 29,304       26.7 %    $
 
 7,875       29.1 % 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
(1)
 
Permanent items relate principally to compensation charges, qualified transportation fringe benefits and meals and entertainment.