INCOME TAXES

6 Months Ended

Jun. 30, 2023

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. In certain instances, the Company uses the discrete method when it believes the actual year-to-date effective rate provides a more reliable estimate of its income tax rate for the period. 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.

For the three months ended June 30, 2023, the effective rate reflects a provision of 24.1 percent compared to a provision of 22.3 percent for the comparable period in the prior year. For the six months ended June 30, 2023, the effective rate reflects a provision of 23.6 percent compared to a provision of 26.0 percent for the comparable period in the prior year. The decrease in the comparative effective tax rate year to date is primarily due to favorable discrete items.