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INCOME TAXES
 3 Months Ended
Mar. 31, 2022
INCOME TAXES  
INCOME TAXES

(9)   INCOME TAXES

The income tax provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items, primarily related to excess tax benefits on stock option exercises. For the three months ended March 31, 2022 discrete items adjusted were $0.5 million. At March 31, 2022 and 2021, the Company estimated an annual effective tax rate of approximately 25.1% and 25.2%, respectively. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. There is a potential for volatility of the effective tax rate due to various factors.

The provision for income taxes is recorded at the end of each interim period based on the Company’s best estimate of its effective income tax rate expected to be applicable for the full fiscal year. The Company’s effective income tax rate was 30% for the three months ended March 31, 2022. Discrete items recognized during the three months ended March 31, 2022 and 2021, resulted in a tax expense of approximately $0.1 million and a tax benefit of approximately $0.1 million, respectively. The Company recorded an income tax expense of $0.6 million and a tax benefit of $0.4 million for the three months ended March 31, 2022 and 2021, respectively.

No taxes were paid during the three months ended March 31, 2022 and 2021.