Provision for Income Taxes

9 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Provision for Income Taxes

Note 6 – Provision for income taxes:

	Three months ended						Nine months ended
	September 30,						September 30,
	2019			2020			2019			2020
	(In thousands)						(In thousands)
Expected tax expense, at the U.S. federal statutory    income tax rate of 21%	$	1,074		$	513		$	3,505		$	2,270
State income taxes		185			90			588			384
FDII benefit		(22	)		(7	)		(170	)		(39	)
Other, net		(10	)		14			-			25
Total income tax expense	$	1,227		$	610		$	3,923		$	2,640

We qualify for the foreign derived intangible income (FDII) deduction.  We recognized a current cash tax benefit of $39,000 in the first nine months of 2020 and $170,000 in the first nine months of 2019 ($98,000 of our 2019 current cash tax benefit is related to 2018).

On March 27, 2020, the “Coronavirus Aid, Relief and Economic Security (CARES) Act” was signed into law in response to the COVID-19 pandemic. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, modifications to the limitation of business interest for 2019 and 2020 and technical corrections to tax depreciation methods for qualified improvement property.  We have evaluated the relevant provisions of the CARES Act and determined the impact is not material to our tax provision.