Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

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Income Taxes
 3 Months Ended
Mar. 31, 2017
Income Tax Disclosure [Abstract]  
Income Taxes
10. Income Taxes

The Company’s effective tax rate for the three months ended March 31, 2017 and 2016 was 38.5% and 40.0%, 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 statutory federal corporate income tax rate of 35% to income before provision for income taxes and consisted of the following (in thousands):

 

     Three Months Ended March 31,  
     2017     2016  
     Amount      Rate     Amount      Rate  

Income tax expense at the federal statutory rate of 35%

    $ 6,826        35.0 %    $ 8,644        35.0 % 

State income tax expense, net of federal benefit

      768        3.9 %      986        4.0 % 

Foreign rate differential

      22        0.1 %      59        0.2 % 

Windfall tax benefits, net related to stock-based compensation

      (156 )       (0.7 )%      —          —    

Change in valuation allowance

      54        0.3 %      146        0.6 % 

Other

      (12 )       (0.1 )%      47        0.2 % 
  

 

 

     

 

 

    

 

 

     

 

 

  
   $ 7,502        38.5 %    $ 9,882        40.0 %