Income Taxes - PetIQ, LLC and Subsidiaries

6 Months Ended

Jun. 30, 2017

Pet, LLC and Subsidiaries (the "Company")

Income Taxes

Note 4 -     Income Taxes

The Company is a limited liability company, and the majority of our businesses and assets are held and operated by limited liability companies, which are not subject to entity-level federal or state income taxation.  The income taxes with respect to these operations are payable by our member.  The Company makes cash distributions to permit the member to pay these taxes as needed by the member’s tax situation.  In the three and six months ended June 30, 2017 and 2016, the Company did not make any cash distributions. 

The Company’s income tax provision generally consists of income taxes payable by our separate subsidiaries that are taxed as corporations.  As of June 30, 2017, and December 31, 2016, the taxable foreign subsidiaries had $452 and $482, respectively of deferred tax assets.  The deferred tax assets resulted primarily from net operating losses and were fully offset by a valuation allowance.