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Income Taxes

6 Months Ended

Jun. 30, 2021

10. Income Taxes

The Company’s provision for income taxes and effective tax rates for the three months and six months ended June 30, 2021 and 2020 are presented in the following table:


	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020

	(Dollars in thousands)
Earnings (loss) before provision (benefit) for income taxes	$	4,845		$	(13,129)		$	6,741		$	(11,283)
Provision (benefit) for income taxes	$	1,025		$	(4,246)		$	1,596		$	(3,562)
Effective tax rate		21.2	%		32.3	%		23.7	%		31.6	%

The effective tax rate for the first six months of 2021 differed from the federal rate of 21% because of state taxes, the benefit of tax-free municipal bond income, and the utilization of net operating loss (NOL) carryforwards at Florsheim Australia.

Last year’s effective tax rates were higher because the Company did not record income tax benefits on foreign subsidiary losses, and, in the U.S. the Company had the ability to carry back current year losses to a tax year when the U.S. federal statutory tax rate was 35%, which was permitted under the U.S. Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”).

- 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.

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