Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v3.24.3
Income Taxes
 9 Months Ended
Sep. 30, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company’s effective tax rate for the three and nine months ended September 30, 2024 was 15.2% and 14.7%, respectively, compared to 17.8% and 17.1% for the three and nine months ended September 30, 2023, 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 benefit for income taxes differs from the amount computed by applying the U.S. federal statutory rate to income before benefit for income taxes and consisted of the following (dollars in thousands):
Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
Amount Rate Amount Rate Amount Rate Amount Rate
Income tax benefit at the federal statutory rate $ (1,334) 21.0  % $ (2,363) 21.0  % $ (5,150) 21.0  % $ (6,031) 21.0  %
State income tax benefit, net of federal benefit (159) 2.5  % (358) 3.2  % (664) 2.7  % (782) 2.7  %
Shortfall tax (benefit) expense, net related to stock-based compensation (41) 0.6  % 23  (0.2) % 535  (2.2) % 796  (2.8) %
Change in valuation allowance 123  (1.9) % (3) 0.0  % (194) 0.8  % 241  (0.8) %
Permanent and other items(1)
444  (7.0) % 691  (6.2) % 1,860  (7.6) % 861  (3.0) %
$ (967) 15.2  % $ (2,010) 17.8  % $ (3,613) 14.7  % $ (4,915) 17.1  %
(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.