Quarterly report pursuant to Section 13 or 15(d)

INCOME TAXES

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INCOME TAXES
6 Months Ended
Jun. 30, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 9. INCOME TAXES

Our forecasted annual effective tax rate (“AETR”) at June 30, 2022 was 8.4%, as compared to 12.8% at June 30, 2021. This reduction was primarily due to the change in valuation allowance as a result of changes in estimates of current-year ordinary income considered in determining the forecasted AETR and favorable discrete items related to stock compensation in the current and previous quarters.

For the six months ended June 30, 2022 and 2021, our effective tax rate (“ETR”) was (4.9)% and 4.2%, respectively. The decrease in the ETR for the six months ended June 30, 2022 is a result of favorable discrete items related to excess tax benefits from stock-based compensation and changes in valuation allowance against deferred tax attributes.