Income Taxes

6 Months Ended

Jun. 30, 2022

Income Taxes

Income Taxes

8. Income Taxes

The Company calculates its tax provision in interim periods using its best estimate of the effective tax rate expected for the full year. For the three months ended June 30, 2022 and 2021, the Company’s tax rate of 20.2% and 20.5%, respectively, was lower than the statutory rate of 21% due primarily to the tax impact of the permanent component of employee stock option exercises.

For the six months ended June 30, 2022, the Company’s tax rate of 22.1% was higher than the statutory rate due primarily to non-deductible executive compensation expense. For the six months ended June 30, 2021, the Company’s tax rate of 18.7% was lower than the statutory rate due primarily to the tax impact of the permanent component of employee stock option exercises.