Income Taxes

6 Months Ended

Jun. 30, 2022

Income Taxes

Income Taxes

12. Income Taxes

The Company applies an estimated annual effective rate to interim period pre-tax income to calculate the income tax provision for the quarter in accordance with the principal method prescribed by the accounting guidance established for computing income taxes in interim periods. The Company’s effective tax rates were 25.6% and 23.5% for the three months ended June 30, 2022 and 2021, respectively, and 23.2% and 23.4% for the six months ended June 30, 2022 and 2021, respectively. The effective tax rate for the six months ended June 30, 2022 was higher than the applicable statutory rate primarily due to the impact of non-deductible compensation expense and other permanent adjustments.