XML 27 R15.htm IDEA: XBRL DOCUMENT

Note 7 - Income Taxes	6 Months Ended
Jun. 30, 2020
Notes
Note 7 - Income Taxes	Note 7 – Income Taxes The Company has elected to be, and is, treated as an S corporation for income tax reporting purposes. Taxable income or loss of an S corporation is passed through to and included in the individual tax returns of the shareholders of the Company, rather than being taxed at the corporate level. Notwithstanding this election, income taxes are reported for, and paid by, the Company's insurance subsidiaries, as they are not allowed by law to be treated as S corporations, as well as for the Company in Louisiana, which does not recognize S corporation status. Effective income tax rates were 13% and 20% during the three- and six-month periods ended June 30, 2020, respectively, compared to 19% and 17% during the same comparable periods a year ago. During the three-month period just ended, the S corporation incurred higher income, which increased the overall pre-tax income of the Company resulting in a lower effective tax rate for the quarter just ended compared to the same period in 2019. However, during the six-month period just ended, the S corporation incurred a higher loss, which lowered the overall pre-tax income of the Company resulting in a higher effective tax rate for the six-month period just ended compared to the same period a year ago.

Note 7 - Income Taxes

6 Months Ended

Jun. 30, 2020

Note 7 – Income Taxes

The Company has elected to be, and is, treated as an S corporation for income tax reporting purposes. Taxable income or loss of an S corporation is passed through to and included in the individual tax returns of the shareholders of the Company, rather than being taxed at the corporate level. Notwithstanding this election, income taxes are reported for, and paid by, the Company's insurance subsidiaries, as they are not allowed by law to be treated as S corporations, as well as for the Company in Louisiana, which does not recognize S corporation status.

Effective income tax rates were 13% and 20% during the three- and six-month periods ended June 30, 2020, respectively, compared to 19% and 17% during the same comparable periods a year ago. During the three-month period just ended, the S corporation incurred higher income, which increased the overall pre-tax income of the Company resulting in a lower effective tax rate for the quarter just ended compared to the same period in 2019. However, during the six-month period just ended, the S corporation incurred a higher loss, which lowered the overall pre-tax income of the Company resulting in a higher effective tax rate for the six-month period just ended compared to the same period a year ago.

- 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