Income Taxes

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company is taxed as a C corporation.

For interim periods, the provision for income taxes (including federal, state, local and foreign taxes) is calculated based on the estimated annual effective tax rate, adjusted for certain discrete items for the full fiscal year. Cumulative adjustments to the Company's estimate are recorded in the interim period in which a change in the estimated annual effective rate is determined.

Each quarter the Company updates its estimate of the annual effective tax rate, and if its estimated tax rate changes, the Company makes a cumulative adjustment.

The following table presents our income tax provision and our income tax rate for the three months ended March 31, 2023 and 2022.

	Three Months Ended March 31,
(in thousands, except percentages)	2023			2022
Income tax provision (benefit)	$	622		$	(616)
Income tax rate	17.2		%	28.9		%

The U.S. federal statutory tax rate was 21% for each of the three months ended March 31, 2023 and 2022. The difference between the U.S. federal statutory tax rate and the Company’s effective tax rate period over period was primarily due to state income taxes, tax credits, other permanent adjustments and discrete tax items.

No valuation allowance was required as of March 31, 2023 or December 31, 2022.