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INCOME TAXES
 9 Months Ended
Sep. 30, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The Company calculates the tax provision for interim periods using an estimated annual effective tax rate applied to year-to-date ordinary income and adjusts for discrete items in the quarter. In each quarter, the estimate of the annual effective tax rate is updated and an adjustment is made in the year-to-date provision. The annual effective tax rate is subject to fluctuation due to factors including changing assumptions on forecasted annual pretax income, certain book and tax differences, valuation allowances against deferred tax assets, or changes in or interpretation of tax laws.
The Company’s effective tax rate (“ETR”) for the three months ended September 30, 2022 and September 30, 2021 was 15.4% and (49.9)%, respectively. The ETR of 15.4% for the three months ended September 30, 2022 was lower than the U.S. statutory rate of 21.0% primarily due to lower deductible stock compensation expense during the quarter.
The Company’s ETR for the nine months ended September 30, 2022 and September 30, 2021 was 17.1% and (30.3)%, respectively. The ETR of 17.1% for the nine months ended September 30, 2022 was lower than the U.S. statutory rate of 21.0% primarily due to a valuation allowance on deferred tax assets associated with impairment charges and non-deductible compensation, offset by a tax benefit for U.S. state taxes and U.S. federal research and development credits.