Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v3.19.3
Income Taxes
 9 Months Ended
Sep. 30, 2019
Income Tax Disclosure [Abstract]  
Income Taxes
13.
Income Taxes
The Company’s effective tax rate for the three and nine months ended September 30, 2019 was 26.7% and 27.3%, respectively, compared to 28.5% and 27.2% for the three and nine months ended September 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 September 30,
   
Nine Months Ended September 30,
 
 
2019
   
2018
   
2019
   
2018
 
 
Amount
   
Rate
   
Amount
   
Rate
   
Amount
   
Rate
   
Amount
   
Rate
 
Income tax expense at the federal statutory rate
  $
 
 
5,526
     
21.0
 %   $
 
 
6,125
     
21.0
 %   $
 
 
16,247
     
21.0
 %   $
 
 
17,599
     
21.0
 %
State income tax expense, net of federal benefit
   
1,118
     
4.2
 %    
1,462
     
5.0
 %    
3,359
     
4.3
 %    
3,974
     
4.7
 %
Windfall (shortfall) tax benefits, net related to stock-based compensation
   
53
     
0.2
 %    
(17
 )    
(0.1
 )%    
(201
 )    
(0.2
 )%    
(261
 )    
(0.3
 )%
Change in valuation allowance
   
408
     
1.6
 %    
162
     
0.6
 %    
874
     
1.1
 %    
284
     
0.3
 %
Permanent and other items 
(1)
    
(81
 )    
(0.3
 )%    
583
     
2.0
 %    
880
     
1.1
 %    
1,176
     
1.5
 %
                                                                 
  $
7,024
     
26.7
 %   $
8,315
     
28.5
 %   $
21,159
     
27.3
 %   $
22,772
     
27.2
 %
                                                                 
(1)
 Permanent items relate principally to compensation charges, qualified transportation fringe benefits, reversal of uncertain tax positions and meals and entertainment.