Income Taxes

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

4. Income Taxes

At the end of each interim period, we make our best estimate of the effective tax rate and the impact of discrete items, if any, and adjust the rate as necessary.

The Company recorded income tax expense of $10.0 million and $7.3 million for the three months ended March 31, 2022 and 2021, respectively, resulting in an effective tax rate of 24.6 percent and 28.6 percent, respectively, as compared to the 21.0 percent federal statutory rate. During both periods, the difference between the Company’s effective tax rate and the federal statutory rate primarily reflects the impact of state taxes and disallowed expenses. The impact of state taxes in 2022 included the revaluation of certain deferred tax liabilities due to changes in apportioned state tax rates, which resulted in an income tax benefit of $1.0 million.