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Income Taxes
 3 Months Ended
Mar. 31, 2023
Income Taxes  
Income Taxes

Note 14. Income Taxes

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The following table sets forth the Company’s income tax provision for the periods indicated:

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Three Months Ended

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March 31, 

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2023

    

2022

    

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(in thousands)

Income before taxes

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$

33,569

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$

29,033

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Income tax provision

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​

6,752

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4,077

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Income before equity in losses of unconsolidated affiliate

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$

26,817

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$

24,956

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Income tax provision as a percentage of income before income taxes

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​

20.1

%

 

14.0

%

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The change in the Company’s effective tax rate for the three months ended March 31, 2023 was primarily due to differences in pre-tax income positions and timing of discrete tax items.

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Valuation Allowance

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In assessing the need for a valuation allowance, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will be realized. Ultimately, realization depends on the existence of future taxable income. Management considers sources of taxable income such as income in prior carryback periods, future reversal of existing deferred taxable temporary differences, tax-planning strategies, and projected future taxable income.

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The Company continues to record a full valuation allowance on AFP’s net deferred income tax assets and will continue to do so until AFP generates sufficient taxable income to realize its deferred income tax assets.

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The Company records a valuation allowance on net deferred income tax assets in states where it files separately and will continue to do so until sufficient taxable income is generated to realize these state deferred income tax assets.