Income Taxes

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company is taxed as a C corporation.

For interim periods, the provision for income taxes (including federal, state, local and foreign taxes) is calculated based on the estimated annual effective tax rate, adjusted for certain discrete items for the full fiscal year. Cumulative adjustments to the Company's estimate are recorded in the interim period in which a change in the estimated annual effective rate is determined. Each quarter the Company updates its estimate of the annual effective tax rate, and if its estimated tax rate changes, the Company makes a cumulative adjustment.

The following table presents our income tax provision and our income tax rate for the three and nine months ended September 30, 2022 and 2021.

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands, except percentages)	2022			2021			2022			2021
Income tax provision	$	1,654		$	1,615		$	1,275		$	844
Income tax rate	31.2		%	28.8		%	29.9		%	25.7		%

The U.S. federal statutory tax rate was 21% for each of the three and nine months ended September 30, 2022 and 2021. The difference between the U.S. federal statutory tax rate and the Company’s effective tax rate for the three and nine months ended September 30, 2022 was primarily due to state income taxes, tax credits, other permanent adjustments and discrete tax items.

No valuation allowance was required as of September 30, 2022 or December 31, 2021.