Income Taxes

9 Months Ended

Sep. 30, 2020


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Current income tax benefit (expense)	$	—	$	46	$	(30)	$	33
Deferred income tax (expense) benefit	—		(92)		15		(204)
Total income tax expense	$	—	$	(46)	$	(15)	$	(171)

We recorded no income tax expense or benefit during the three months ended September 30, 2020. As a result, the effective tax rate for the three months ended September 30, 2020 was 0.0%. The effective tax rate for the nine months ended September 30, 2020 was 0.0%. The effective tax rates for the three and nine months ended September 30, 2020 differ from the federal statutory rate of 21.0%, and the difference is primarily due to the increase in the valuation allowance on deferred tax assets resulting from current year losses.

The effective income tax rate for the three and nine months ended September 30, 2019 was (0.8)%, and (1.0)%, respectively, which differed from the federal statutory rate of 21.0% primarily due to the increase in the valuation allowance on deferred tax assets resulting from current year losses.

We have significant deferred tax assets, consisting primarily of net operating losses, some of which have a limited life, generally expiring between the years 2032 and 2037, and capital losses, which begin to expire in 2020. We regularly assess the evidence available to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative losses incurred in recent years. Such objective evidence limits the ability to consider other subjective evidence such as our projections for future taxable income.In light of our continued ordinary losses, at September 30, 2020 we determined that our deferred tax liabilities were not sufficient to fully realize our deferred tax assets. Accordingly, a valuation allowance continues to be required against the portion of our deferred tax assets that is not offset by deferred tax liabilities. We expect our effective income tax rate to be near (0.1)% for the remainder of 2020.

- 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.

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