INCOME TAXES	3 Months Ended
Mar. 31, 2020
INCOME TAXES
INCOME TAXES	NOTE D – INCOME TAXES The effective tax rate was 20.3% and 25.9% for the three months ended March 31, 2020 and March 31, 2019, respectively. State tax rates vary among states and average approximately 6.0% to 6.5%, although some state rates are higher and a small number of states do not impose an income tax. Due to the uncertainty surrounding the impact of the COVID-19 pandemic, for the three months ended March 31, 2020, the Company calculated the tax provision based on the actual statutory tax rate as opposed to using an annual effective tax rate, because of the inability to provide a reliable estimate of ordinary income within a reasonable range or the tax effect of nondeductible expenses. For the three months ended March 31, 2020, the difference between the Company’s effective tax rate and the federal statutory rate primarily resulted from state income taxes, nondeductible expenses, changes in the cash surrender value of life insurance, federal alternative fuel and research and development tax credits, changes in tax valuation allowances, and the reversal of an uncertain tax position. For the three months ended March 31, 2019, the difference between the Company’s effective tax rate and the federal statutory rate primarily resulted from state income taxes, nondeductible expenses, and changes in the cash surrender value of life insurance. As of March 31, 2020, the Company’s deferred tax liabilities, which will reverse in future years, exceeded the deferred tax assets. The Company evaluated the total deferred tax assets at March 31, 2020 and concluded that, other than for certain deferred tax assets related to foreign tax credit carryforwards, the assets did not exceed the amount for which realization is more likely than not. In making this determination, the Company considered the future reversal of existing taxable temporary differences, future taxable income, and tax planning strategies. Additionally, as a result of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) enacted on March 27, 2020, net operating losses originating in the tax year including December 31, 2020 may be carried back five years to a period in which the Company had substantial taxable income. Valuation allowances for deferred tax assets totaled $0.9 million and $0.7 million at March 31, 2020 and December 31, 2019, respectively. The Company had a reserve for uncertain tax positions of $0.9 million at December 31, 2019. The reserve was reversed in the first quarter of 2020 due to the expiration of the statute of limitations. The Company paid foreign and state income taxes of $0.3 million during the three months ended March 31, 2020 and paid $6.6 million of federal, state, and foreign income taxes during the three months ended March 31, 2019. The Company received refunds of $0.4 million of federal income taxes and refunds of less than $0.1 million of state income taxes that were paid in prior years during the three months ended March 31, 2020 and 2019, respectively.

INCOME TAXES

3 Months Ended

Mar. 31, 2020

NOTE D – INCOME TAXES

The effective tax rate was 20.3% and 25.9% for the three months ended March 31, 2020 and March 31, 2019, respectively. State tax rates vary among states and average approximately 6.0% to 6.5%, although some state rates are higher and a small number of states do not impose an income tax. Due to the uncertainty surrounding the impact of the COVID-19 pandemic, for the three months ended March 31, 2020, the Company calculated the tax provision based on the actual statutory tax rate as opposed to using an annual effective tax rate, because of the inability to provide a reliable estimate of ordinary income within a reasonable range or the tax effect of nondeductible expenses.

For the three months ended March 31, 2020, the difference between the Company’s effective tax rate and the federal statutory rate primarily resulted from state income taxes, nondeductible expenses, changes in the cash surrender value of life insurance, federal alternative fuel and research and development tax credits, changes in tax valuation allowances, and the reversal of an uncertain tax position. For the three months ended March 31, 2019, the difference between the Company’s effective tax rate and the federal statutory rate primarily resulted from state income taxes, nondeductible expenses, and changes in the cash surrender value of life insurance.

As of March 31, 2020, the Company’s deferred tax liabilities, which will reverse in future years, exceeded the deferred tax assets. The Company evaluated the total deferred tax assets at March 31, 2020 and concluded that, other than for certain deferred tax assets related to foreign tax credit carryforwards, the assets did not exceed the amount for which realization is more likely than not. In making this determination, the Company considered the future reversal of existing taxable temporary differences, future taxable income, and tax planning strategies. Additionally, as a result of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) enacted on March 27, 2020, net operating losses originating in the tax year including December 31, 2020 may be carried back five years to a period in which the Company had substantial taxable income. Valuation allowances for deferred tax assets totaled $0.9 million and $0.7 million at March 31, 2020 and December 31, 2019, respectively.

The Company had a reserve for uncertain tax positions of $0.9 million at December 31, 2019. The reserve was reversed in the first quarter of 2020 due to the expiration of the statute of limitations.

The Company paid foreign and state income taxes of $0.3 million during the three months ended March 31, 2020 and paid $6.6 million of federal, state, and foreign income taxes during the three months ended March 31, 2019. The Company received refunds of $0.4 million of federal income taxes and refunds of less than $0.1 million of state income taxes that were paid in prior years during the three months ended March 31, 2020 and 2019, respectively.