Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v3.22.2.2
Income Taxes
 9 Months Ended
Sep. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company’s effective tax rate for the three and nine months ended September 30, 2022 was 31.7% and 27.0%, respectively, compared to 26.0% and 26.7% respectively, for the three and nine months ended September 30, 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 September 30, Nine Months Ended September 30,
2022 2021 2022 2021
Amount Rate Amount Rate Amount Rate Amount Rate
Income tax expense at the federal statutory rate $ 6,573  21.0  % $ 9,627  21.0  % $ 27,712  21.0  % $ 23,052  21.0  %
State income tax expense, net of federal benefit 1,707  5.5  % 2,111  4.6  % 6,129  4.6  % 5,157  4.7  %
(Windfall) shortfall tax benefits, net related to stock-based compensation (54) (0.2) % (443) (1.0) % (2,118) (1.6) % (522) (0.5) %
Change in valuation allowance 1,073  3.4  % 55  0.1  % 992  0.8  % 243  0.2  %
Permanent and other items (1)
640  2.0  % 571  1.3  % 2,936  2.2  % 1,374  1.3  %
$ 9,939  31.7  % $ 11,921  26.0  % $ 35,651  27.0  % $ 29,304  26.7  %
(1) Permanent items relate principally to compensation charges, qualified transportation fringe benefits and meals and entertainment.