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Income Taxes
6 Months Ended
Jun. 30, 2019
Income Taxes  
Income Taxes

Note K — Income Taxes

 

We recorded a provision for  income taxes of $4.4 million and $0.7 million for the three and six months ended June 30, 2019. The effective tax rate was 30.5% and 18.0% for the three and six months ended June 30, 2019. We recorded a benefit for income taxes of $0.1 million and $6.3 million for the three and six months ended June 30, 2018. The effective rate was (0.7)% and 39.4% for the three and six months ended June 30, 2018.

 

The increase in the effective tax rate for the three months ended June 30, 2019 compared with the three months ended June 30, 2018 is primarily attributable to the change to the annualized effective tax rate method from the discrete method used during the prior period, an increased estimated annual pre-tax book income, and the windfall from stock-based compensation during the period.  Our effective tax rate for the three months ended June 30, 2019 and June 30, 2018 differed from the federal statutory tax rate of 21% primarily due to non-deductible expenses and the windfall from stock-based compensation during the period.

 

The decrease in the effective tax rate for the six months ended June 30, 2019 compared with the six months ended June 30, 2018 is primarily attributable to an increased estimated annual income, an increase in pre-tax book income for the six months ended June 30, 2019, and the windfall from stock-based compensation during the period. Our effective tax rate for the six months ended June 30, 2019 and June 30, 2018 differed from the federal statutory tax rate of 21% primarily due to the windfall and shortfall from stock based compensation expense in the respective periods, as well as non-deductible expenses.