Income Taxes

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

NOTE N – INCOME TAXES

The Company’s effective tax rate was 22% and 26% for the three-month periods ended September 30, 2021 and 2020, respectively. The decrease is primarily related to favorable movement in permanent items including executive retirement compensation. This favorable movement in permanent items also reduced the effective tax rate approximately 3% from the three months ended June 30, 2021. For the nine months ended September 30, 2021 and 2020, the company’s effective tax rate was 28% and 26%, respectively. The increase was due to increased earnings in higher tax jurisdictions.

The Company provides valuation allowances against deferred tax assets when it is more likely than not that some portion or all of its deferred tax assets will not be realized. No significant changes to the valuation allowances were reflected for the three and nine-month periods ended September 30, 2021.

There were no changes to the balances of unrecognized tax benefits on December 31, 2020 and during the nine months ended September 30, 2021.