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.