|3 Months Ended|
Mar. 31, 2022
|Income Tax Disclosure [Abstract]|
|Income Taxes||Income Taxes
Income tax expense during interim periods is based on our estimated annual effective income tax rate plus any discrete items that are recorded in the period in which they occur. Our tax rate is affected by discrete items that may occur in any given year but may not be consistent from year to year.
Our effective tax rate was 24.8% and 22.2% for the three months ended March 31, 2022 and 2021, respectively. The effective tax rate was higher for the three months ended March 31, 2022 compared to the same period of prior year primarily due to 1) book expense in connection with the fair market value decrease in our COLI plan in the period ended March 31, 2022 that was reversed for tax purposes as opposed to book income in the same period in 2021, and 2) significantly lower tax deduction projected for foreign derived intangible income ("FDII") in 2022 due to reduced profitability within our Federal and Defense segment.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef