XML 29 R19.htm IDEA: XBRL DOCUMENT

Income Taxes	3 Months Ended
Mar. 31, 2021
Income Taxes
Income Taxes	Note 11. Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the difference is expected to reverse. Additionally, the impact on deferred tax assets and liabilities of changes in tax rates is reflected in the financial statements in the period that includes the date of enactment. The Company reported income tax expense of $0.9 million and $0.8 million for the three months ended March 31, 2021 and 2020, respectively. The slight increase in expense is primarily related to an increase in income before tax while the lower effective income tax rate was primarily driven by the windfall deduction related to equity compensation, an increase in the research and development credit, and a decrease in state valuation allowance. The near breakeven income before tax for the three months ended March 31, 2020 resulted in tax adjustments having a larger impact on the effective tax rate as compared to the three months ended March 31, 2021.

Income Taxes

3 Months Ended

Mar. 31, 2021

Note 11. Income Taxes

The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the difference is expected to reverse. Additionally, the impact on deferred tax assets and liabilities of changes in tax rates is reflected in the financial statements in the period that includes the date of enactment.

The Company reported income tax expense of $0.9 million and $0.8 million for the three months ended March 31, 2021 and 2020, respectively. The slight increase in expense is primarily related to an increase in income before tax while the lower effective income tax rate was primarily driven by the windfall deduction related to equity compensation, an increase in the research and development credit, and a decrease in state valuation allowance. The near breakeven income before tax for the three months ended March 31, 2020 resulted in tax adjustments having a larger impact on the effective tax rate as compared to the three months ended March 31, 2021.

- 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