Income Taxes

3 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Income Tax Disclosure

Note 12 - Income Taxes

The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, as well as in the majority of states and in Canada. As of March 31, 2020, the Company has a net deferred tax liability of $51.1 million, which includes $2.0 million of state net operating loss ("NOL") carry-forwards, expiring in tax years 2029-2031. The Company believes that it is more likely than not that the benefit from only certain state NOL carry-forwards will not be realized and therefore has provided a valuation allowance of $1.1 million against the deferred tax assets relating to these NOL carry-forwards. The Company had gross unrecognized tax benefits of $4.3 million as of March 31, 2020. If recognized, the unrecognized tax benefit would reduce the 2020 annual effective tax rate by 0.24%.

The Company's consolidated effective tax rate as a percentage of pre-tax loss for the three months ended March 31, 2020 was (1.7)%, as compared to a percentage of pre-tax net income of 24.6% for the three ended March 31, 2019. The effective tax rate became negative primarily due to the impairment of non-deductible goodwill during the three months ended March 31, 2020.