XML 29 R17.htm IDEA: XBRL DOCUMENT

Income Taxes	9 Months Ended
Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	The Company recorded income tax expense of $604,900 in the third quarter of 2020, or negative 17.4% of pre-tax loss, compared to $2.3 million income tax benefit, or 21.5% of pre-tax loss in the third quarter of 2019. The difference in the effective federal income tax rate from the normal statutory rate was primarily related to the recording of a valuation allowance of $1.4 million in the third quarter on U.S. and foreign deferred tax assets. The Company recorded income tax benefit of $3.4 million for the nine months ended September 30, 2020, or 10.9% of pre-tax loss, compared to $2.6 million income tax benefit, or 21.5% of pre-tax loss, for the nine months ended September 30, 2019. The difference in the effective federal income tax rate from the normal statutory rate was primarily related to the recording of a valuation allowance of $4.6 million for the nine months ended September 30, 2020 on U.S. and foreign deferred tax assets. In March of 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) became law. The CARES Act included tax provisions under which net operating losses from 2018, 2019 and 2020 can be carried back for five years, modifying the law that had previously not permitted any carryback, and also increased the amount of deductible interest from 30% to 50% of adjusted taxable income for the 2019 and 2020 years. These changes have not had any effect on the Company’s expected cash tax expenditures or income tax expense. The CARES Act also accelerated the ability to receive refunds of AMT credits from prior year, which allowed the Company to accelerate $11,400 of the refund of such credit into its 2019 return.

Income Taxes

9 Months Ended

Sep. 30, 2020

The Company recorded income tax expense of $604,900 in the third quarter of 2020, or negative 17.4% of pre-tax loss, compared to $2.3 million income tax benefit, or 21.5% of pre-tax loss in the third quarter of 2019. The difference in the effective federal income tax rate from the normal statutory rate was primarily related to the recording of a valuation allowance of $1.4 million in the third quarter on U.S. and foreign deferred tax assets.

The Company recorded income tax benefit of $3.4 million for the nine months ended September 30, 2020, or 10.9% of pre-tax loss, compared to $2.6 million income tax benefit, or 21.5% of pre-tax loss, for the nine months ended September 30, 2019. The difference in the effective federal income tax rate from the normal statutory rate was primarily related to the recording of a valuation allowance of $4.6 million for the nine months ended September 30, 2020 on U.S. and foreign deferred tax assets.

In March of 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) became law. The CARES Act included tax provisions under which net operating losses from 2018, 2019 and 2020 can be carried back for five years, modifying the law that had previously not permitted any carryback, and also increased the amount of deductible interest from 30% to 50% of adjusted taxable income for the 2019 and 2020 years. These changes have not had any effect on the Company’s expected cash tax expenditures or income tax expense. The CARES Act also accelerated the ability to receive refunds of AMT credits from prior year, which allowed the Company to accelerate $11,400 of the refund of such credit into its 2019 return.

- Definition

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.

+ References + Details