INCOME TAXES

3 Months Ended

Mar. 31, 2022

INCOME TAXES

INCOME TAXES

9.  INCOME TAXES

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

Income tax provision for the first quarter of 2022 reflects an effective tax rate of 22.7 percent, compared to an effective rate of 19.3 percent for the comparable period in the prior year. The increase in the effective rate during the first quarter of 2022 is primarily due to unfavorable permanent adjustments together with detrimental discrete adjustments compared to the same period of 2021.