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Taxes on Income
9 Months Ended
Sep. 30, 2020
Income Tax Disclosure [Abstract]  
Taxes on Income Taxes on Income
 
The Company periodically reviews its tax positions under the accounting standards related to uncertainty in income taxes, which defines the criteria that an individual tax position would have to meet for some or all of the income tax benefit to be recognized in a taxable entity’s financial statements. Under the guidelines, an entity should recognize the financial statement benefit of a tax position if it determines that it is more likely than not that the position will be sustained on examination. The term “more likely than not” means a likelihood of more than 50 percent. In assessing whether the more-likely-than-not criterion is met, the entity should assume that the tax position will be reviewed by the applicable taxing authority and all available information is known to the taxing authority.

The Company periodically evaluates its deferred tax assets to determine whether a valuation allowance is required based upon a determination that some or all of the deferred assets may not be ultimately realized. At September 30, 2020 and December 31, 2019, the Company had no recorded valuation allowance. The Company is no longer subject to IRS examination for years before 2015.
The Company's policy is to recognize any interest or penalties related to uncertain tax positions in income tax expense. Interest and penalties recognized during the periods ended September 30, 2020 and 2019 were insignificant.

The Company reported a provision for income taxes of $2,800,000 for the nine months ended September 30, 2020 as compared to the $4,989,000 provision reported in the comparable period of 2019. The effective tax rate was 28.46% for the nine months ended September 30, 2020 as compared to 28.90% for the comparable period of 2019.