Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v3.23.3
Income Taxes
 9 Months Ended
Sep. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes The Company’s effective tax rate for the three and nine months ended September 30, 2023 was 17.8% and 17.1%, respectively, compared to 31.7% and 27.0% for the three and nine months ended September 30, 2022, 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 September 30, Nine Months Ended September 30,
2023 2022 2023 2022
Amount Rate Amount Rate Amount Rate Amount Rate
Income tax (benefit) expense at the federal statutory rate $ (2,363) 21.0  % $ 6,573  21.0  % $ (6,031) 21.0  % $ 27,712  21.0  %
State income tax (benefit) expense, net of federal benefit (358) 3.2  % 1,707  5.5  % (782) 2.7  % 6,129  4.6  %
Shortfall (windfall) tax benefits, net related to stock-based compensation 23  (0.2) % (54) (0.2) % 796  (2.8) % (2,118) (1.6) %
Change in valuation allowance (3) 0.0  % 1,073  3.4  % 241  (0.8) % 992  0.8  %
Permanent and other items (1)
691  (6.2) % 640  2.0  % 861  (3.0) % 2,936  2.2  %
$ (2,010) 17.8  % $ 9,939  31.7  % $ (4,915) 17.1  % $ 35,651  27.0  %
(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.