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Income Taxes
3 Months Ended
Mar. 31, 2019
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The Company recorded income tax expense of $2.2 million and $17.6 million during the three months ended March 31, 2018 and 2019, reflecting an effective tax rate of 18.5% and 60.4%, respectively.
In February 2019, to align compensation and benefit plans after completion of the merger with CEC, the Compensation Committee of the Company’s Board of Directors took action to terminate all deferred compensation arrangements, including for employees already participating in such arrangements. These changes affect the tax deductibility of certain arrangements, which resulted in a first quarter discrete item reducing the Company’s deferred tax assets by $11.5 million, and increasing the Company’s 2019 effective tax rate and future cash tax payments.
The Company had no unrecognized tax benefits as of March 31, 2018. The Company had $0.9 million of unrecognized tax benefits as of March 31, 2019. Interest and penalties, including those related to uncertain tax positions, are included in the provision for income taxes in the unaudited condensed consolidated statements of income. The Company incurred no expense related to interest and penalties during the three months ended March 31, 2018 and $28,000 during the three months ended March 31, 2019.
The Company paid $0.1 million and $0.7 million in income taxes during the three months ended March 31, 2018 and 2019, respectively.
The tax years since 2015 remain open for Federal tax examination and the tax years since 2014 remain open to examination by state and local taxing jurisdictions in which the Company is subject.