XML 35 R25.htm IDEA: XBRL DOCUMENT v3.19.3
Related Party Transaction
9 Months Ended
Sep. 30, 2019
Related Party Transactions [Abstract]  
Related party transaction Related Party Transaction
In January 2017, the Internal Revenue Service (“IRS”) notified the Company that it was examining the Company’s federal tax returns for the year ended December 31, 2014. As a result of this examination, the IRS informed the Company on May 1, 2019 that certain employment taxes related to the CEO’s compensation were not properly withheld in 2014 and proposed an adjustment. The CEO’s affiliated companies through which he provided his services have agreed to indemnify the Company for any such taxes, and the CEO has executed a personal guaranty in favor of the Company, supporting this indemnification.
At June 30, 2019, the Company recorded a liability of $2.4 million related to the estimated employment tax under-withholding for the years 2014 through 2018. By September 30, 2019, the liability totaled $1.8 million, after the Company paid $0.6 million to the IRS for these taxes and made an additional accrual covering the estimated under-withholding tax liability through 2019. In addition, at September 30, 2019 the Company recorded a receivable from the CEO’s affiliated companies totaling $2.4 million. In October 2019, an amendment to the CEO’s employment agreement was executed, giving the Company the contractual right of offset for any amounts owed to the Company against, and giving the Company the right to withhold payments equal to amounts reasonably estimated to potentially become due to the Company by the CEO’s affiliated companies from, any amounts owed to the CEO under the employment agreement.