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Income Taxes
 6 Months Ended
Jun. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
During the three months ended June 30, 2022 and 2021, the Company recorded approximately $3.3 million and $8.1 million of income tax expense, respectively. The effective tax rate (“ETR”) for the three months ended June 30, 2022 was 31.0% compared to a 27.0% ETR for the same period in 2021.
During the six months ended June 30, 2022 and 2021, the Company recorded approximately $8.2 million and $18.1 million of income tax expense, respectively. The ETR for the six months ended June 30, 2022 was 24.9% compared to a 27.2% ETR for the same period in 2021.
In calculating these rates, the Company considered a variety of factors including the forecasted full year pre-tax results, the federal tax rate, expected non-deductible expenses and estimated state income taxes. The Company’s final ETR for the full year will be dependent on the level of pre-tax income, discrete items, the apportionment of taxable income among state tax jurisdictions and the extent of non-deductible expenses in relation to pre-tax income.
The Company’s income tax provision reflects an estimated annual ETR of 27.2% for 2022, calculated before the impact of discrete items. The effect of reporting discrete items through June 30, 2022 amounts to a decrease to the annual estimated ETR of 230 basis points, resulting in an ETR for the year to date period of 24.9%. The annual estimated ETR includes a statutory federal income tax rate of 21% and a statutory state income tax rate, net of federal benefit, of 3.4%.
Deferred tax assets and liabilities are recorded based on the difference between the financial statement and tax basis of assets and liabilities at the enacted tax rates. The Company reviews its deferred tax assets regularly for recoverability. Management has reviewed all available evidence, both positive and negative, in determining the need for a valuation allowance with respect to the gross deferred tax assets. In reviewing the gross deferred tax assets, management has concluded that the likelihood for utilization of these deferred tax assets is certain, and determined that a valuation allowance is not required on any of the deferred tax assets. Management will continue to analyze the gross deferred tax assets on a quarterly basis to determine whether there is a need for a valuation allowance in the future.
The Company files its income tax returns as prescribed by the tax laws of the jurisdictions in which it operates. As of June 30, 2022, the Company’s 2018 through 2020 tax years are still subject to examination by the Internal Revenue Service and various tax years remain open to examination in certain state jurisdictions.