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INCOME TAXES
 6 Months Ended
Jun. 30, 2022
INCOME TAXES  
INCOME TAXES

NOTE E – INCOME TAXES

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The effective tax rate was 23.0% and 23.6% for the three and six months ended June 30, 2022, respectively, compared to 17.0% and 19.5% for the same periods of  2021. State tax rates vary among states and average approximately 6.0% to 6.5%, although some state rates are higher and a small number of states do not impose an income tax.

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For the three and six months ended June 30, 2022 and 2021, the difference between the Company’s effective tax rate and the federal statutory rate primarily resulted from state income taxes, nondeductible expenses, changes in the cash surrender value of life insurance, federal research and development tax credits, changes in tax valuation allowances, and tax benefit from the vesting of stock awards.

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As of June 30, 2022, the Company’s deferred tax liabilities, which will reverse in future years, exceeded the deferred tax assets. The Company evaluated the total deferred tax assets at June 30, 2022 and concluded that, other than for certain deferred tax assets related to foreign and state tax credit carryforwards and state net operating losses, the assets did not exceed the amount for which realization is more likely than not. In making this determination, the Company considered the future reversal of existing taxable temporary differences, future taxable income, and tax planning strategies. Valuation allowances for deferred tax assets totaled $2.3 million and $2.2 million at June 30, 2022 and December 31, 2021, respectively.

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The Company paid federal, state, and foreign income taxes of $56.4 million and and $15.3 million during the six months ended June 30, 2022 and 2021, respectively. The Company received refunds of federal and state income taxes that were paid in prior years of $1.2 million and less than $0.1 during the six months ended June 30, 2022 and 2021, respectively.

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