Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v3.23.1
Income Taxes
 3 Months Ended
Mar. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company’s effective tax rate for the three months ended March 31, 2023 and 2022 was 49.1% and 26.4%, 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 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,
2023 2022
Amount Rate Amount Rate
Income tax (benefit) expense at the federal statutory rate $ (2,408) 21.0  % $ 9,353  21.0  %
State income tax (benefit) expense, net of federal benefit (739) 6.4  % 2,033  4.6  %
(Windfall) shortfall tax benefits, net related to stock-based compensation 654  (5.7) % (306) (0.7) %
Change in valuation allowance 227  (2.0) % (104) (0.2) %
Permanent and other items (1)
(3,367) 29.4  % 781  1.7  %
$ (5,633) 49.1  % $ 11,757  26.4  %
(1) Permanent items relate principally to compensation charges, qualified transportation fringe benefits, meals and entertainment, and other items principally related to the effect of providing taxes in the interim financial statements based on the estimated full year effective tax rate.