Quarterly report pursuant to Section 13 or 15(d)

Income Tax

v3.22.1
Income Tax
3 Months Ended
Mar. 31, 2022
Income Tax Disclosure [Abstract]  
Income Tax Income TaxOur effective tax rate may vary from the U.S. federal statutory tax rate due to the change in the mix of earnings in various state jurisdictions with different statutory rates, benefits related to tax credits, and the tax impact of non-deductible expenses, stock award activities and other permanent differences between income before income taxes and taxable income. The effective tax rate for the three months ended March 31, 2022 and 2021 was 23.6% and (214.1)%, respectively. The variance from the U.S. federal statutory tax rate of 21% for the three months ended March 31, 2022 was due primarily to the tax deductions related to foreign derived intangible income tax credit as well as the research and development tax credits, which were partially offset by Section 162(m) limitation during the period. The variance from the U.S. federal tax rate of 21% for the three months ended March 31, 2021 was significantly impacted by the discrete tax benefit related to the net excess tax windfalls from the share based compensation resulting from increased stock option exercise activity, stock award vesting and appreciation of our stock price during the period.