XML 34 R19.htm IDEA: XBRL DOCUMENT v3.19.2
Income Taxes
6 Months Ended
Jun. 30, 2019
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The Company’s income tax benefit was $5,628 and $6,389 for the three and six months ended June 30, 2019, respectively, and the income tax expense was $2,906 for each of the three and six months ended June 30, 2018.
The Company’s effective income tax rate for the three and six months ended June 30, 2019 was 24.5% and 24.9%, respectively. The effective income tax rate includes the effect of state income taxes, nondeductible items and benefits for noncontrolling interests. When calculating the annual estimated effective income tax rate for the three and six months ended June 30, 2019, the Company was subject to a loss limitation rule because the year-to-date ordinary loss exceeded the full-year expected ordinary loss. The tax benefit for the year-to-date ordinary loss was limited to the amount that would be recognized if the year-to-date ordinary loss were the anticipated ordinary loss for the full year.
The Company evaluates its effective income tax rate at each interim period and adjusts it accordingly as facts and circumstances warrant. The determination of the annual estimated effective income tax rate at each interim period requires certain estimates and judgments including, but not limited to, the expected operating income for the year, estimated permanent differences between book and tax amounts, and the likelihood of recovering deferred tax assets generated in the current year, primarily net operating loss and other carryforwards, and our ability to uphold certain tax positions. The accounting estimates used to compute the provision for income taxes may change as new events occur and additional information is obtained.
At June 30, 2019, deferred tax assets, net of deferred tax liabilities, was $9,136. A valuation allowance is recorded if it is more likely than not that a portion of the Company’s deferred tax assets will not be realized. The Company evaluates both the positive and negative evidence in determining the need for a valuation allowance on its deferred tax assets. Realization of net operating losses and other carryforwards is dependent upon generating sufficient taxable income in the appropriate jurisdiction prior to the expiration of the carryforward periods, which involves business plans, planning opportunities and expectations about future outcomes. Although realization is not assured, management believes it is more likely than not that our deferred tax assets will be realized. Therefore, no valuation allowance has been recorded for our deferred tax assets. The Company will continue to evaluate the need for a valuation allowance on its deferred tax assets in future periods.