Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

10. Income Taxes

During the three months ended June 30, 2022, the Company recorded an income tax provision of $5,325, representing an effective tax rate of 21.6%. The effective tax rate for the three months ended June 30, 2022 was greater than the statutory tax rate of 21%, principally due to state and local income taxes, shortfalls on the taxable compensation of share-based awards and the Section 162(m) excess officer compensation limitation, partially offset by federal and state research and development tax credits.

During the six months ended June 30, 2022, the Company recorded an income tax provision of $13,027, representing an effective tax rate of 25.0%. The effective tax rate for the six months ended June 30, 2022 was greater than the statutory rate of 21%, principally due to state and local income taxes, shortfalls on the taxable compensation of share-based awards and the Section 162(m) excess officer compensation limitation, partially offset by federal and state research and development tax credits.

During the three months ended June 30, 2021, the Company recorded an income tax provision of $11,142, representing an effective tax rate of 28.4%. The effective tax rate for the three months ended June 30, 2021 was greater than the statutory tax rate of 21%, principally due to state and local income taxes, shortfalls on the taxable compensation of share-based awards and the Section 162(m) excess officer compensation limitation, which became applicable upon the expiration in May 2021 of the transition period permitted following the Company’s initial public offering (“IPO”), partially offset by federal and state research and development tax credits.

During the six months ended June 30, 2021, the Company recorded an income tax provision of $17,604, representing an effective tax rate of 25.9%. The effective tax rate for the six months ended June 30, 2021 was higher than the statutory tax rate of 21%, principally due to state and local income taxes, shortfalls on the taxable compensation of share-based awards and the Section 162(m) excess officer compensation limitation, which became applicable upon the expiration in May 2021 of the transition period permitted following the IPO, partially offset by federal and state research and development tax credits.

The Company and its subsidiaries are subject to various U.S. federal, state, and foreign income tax examinations. The Company is currently not subject to income tax examination for the tax years of 2017 and prior as a result of applicable statute of limitations of the Internal Revenue Service (“IRS”) and a majority of applicable state jurisdictions. The Company is currently not subject to examination in its foreign jurisdictions for tax years 2016 and prior.