Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v3.22.1
Income Taxes
 3 Months Ended
Mar. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes
11.
Income Taxes
The Company’s effective tax rate for the three months ended March 31, 2022 was 26.4%, compared to 28.8% for the three months ended March 31, 2021. 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 March 31,  
     2022     2021  
     Amount      Rate     Amount      Rate  
Income tax expense at the federal statutory rate
    $ 9,353        21.0 %    $ 4,431        21.0 % 
State income tax expense, net of federal benefit
      2,033        4.6 %      1,048        5.0 % 
(Windfall) shortfall tax benefits, net related to stock-based compensation
      (306 )       (0.7 )%      (27 )       (0.1 )% 
Change in valuation allowance
      (104 )       (0.2 )%      180        0.9 % 
Permanent and other items
(1)
      781        1.7 %      454        2.0 % 
    
 
 
     
 
 
    
 
 
     
 
 
  
     $ 11,757        26.4 %    $ 6,086        28.8 % 
    
 
 
     
 
 
    
 
 
     
 
 
  
 
(1)
Permanent items relate principally to compensation charges, qualified transportation fringe benefits and meals and entertainment.