Income Taxes

3 Months Ended

Mar. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The Company’s effective income tax rate is based on expected income, statutory rates, valuation allowances against deferred tax assets, and any tax planning opportunities available to the Company. For interim financial reporting, the Company estimates the annual effective income tax rate based on full year projections and applies the annual effective income tax rate against year-to-date pretax income (loss) to record income tax expense, adjusted for discrete items, if any. The Company refines annual estimates as new information becomes available. The Company’s tax rate does not bear a relationship to statutory tax rates due to permanent differences, a valuation allowance being established for interest expense that is not deductible, and state taxes.

The Company’s income tax expense consisted of the following:

	Three Months Ended
	March 31,
	2019			2018
Income before provision for income taxes	$	21,782		$	5,612
Income tax expense using estimated annual effective income tax rate	6,863			2,056
Impact of discrete items, net	(114		)	(108		)
Income tax expense	$	6,749		$	1,948

The discrete items for the three months ended March 31, 2019 and 2018 is related to an income tax deduction for stock-based compensation.