Income Taxes

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

9. Income Taxes

For the three months ended September 30, 2019 and 2018, we had an effective income tax rate of 25.1% and 26.3%, respectively. The decrease in the effective rate is primarily due to a net favorable impact resulting from adjustments of prior estimates.  

For the nine months ended September 30, 2019 and September 30, 2018, we had an effective income tax rate from continuing operations of 33.4% and 25.6%, respectively.  In 2019, we had additional nondeductible expenses related to the Merger that caused an increase in our effective income tax rate for the nine months ended September 30, 2019 compared to the prior year.  In addition, upon Closing of the Merger, we evaluated the realizability of beginning-of-the-year deferred tax assets and increased the valuation allowance on deferred tax assets related to state net operating loss carryforwards by $1.8 million. We also recorded a $0.9 million reduction in deferred tax assets related to state income tax credits.  These two adjustments increased our income tax expense for the nine months ended September 30, 2019 by approximately $2.7 million.  

We file income tax returns in the U.S. Federal jurisdiction and in various state and foreign jurisdictions.  Tax years remaining subject to examination in the U.S. Federal jurisdiction include 2016 to present.