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

Note 8:  Income Taxes



The Company historically determined the quarterly income tax provision using a discrete year-to-date calculation due to volatility in the newspaper industry and the resulting inability to reliably forecast income or loss before income taxes. In connection with the restatement, the Company re-calculated the income tax benefit for the three months ended March 31, 2019 using an estimated annual effective tax rate based on its annual income before income taxes, adjusted for permanent differences, which it applied to the year-to-date loss before income taxes. Although volatility still exists in the newspaper industry, the Company is appropriately using an estimated annual effective tax rate to calculate its quarterly income tax provision, given the Company’s ability to reliably forecast for the current annual period.



The Company recognized income tax benefit of $964 and $1,315 for the three months ended March 31, 2019 and 2018, respectively. Effective income tax rates were 31.1 percent and 24.7 percent for the three months ended March 31, 2019 and 2018, respectively. The effective income tax rate for the three months ended March 31, 2019, was due to additional losses generated from operations and an increase in the deferred tax asset, offset by the effect of the Texas margin tax.