INCOME TAXES

3 Months Ended

Mar. 31, 2022

INCOME TAXES

INCOME TAXES

12.  INCOME TAXES

The Company generally determines its periodic income tax expense or benefit based upon the current period income or loss and the annual estimated tax rate for the Company adjusted for discrete items including changes to prior period estimates. The estimated tax rate is revised, if necessary, as of the end of each successive interim period during the fiscal year to the Company’s current annual estimated tax rate.

In the first quarter of 2021, the Company used the discrete method since the actual year-to-date effective rate provided a more reliable estimate of its income tax rate for the period. For the three months ended March 31, 2022, the effective rate reflects a provision of 35.5 percent compared to a benefit of 6.9 percent for the comparable period in the prior year. In addition to the discrete method used in the first quarter of 2021, the change in effective tax rate for the quarter ended March 31, 2022 is mainly related to unfavorable permanent adjustments together with detrimental discrete adjustments related to restricted stock vesting and other deferred items.