Income Taxes

6 Months Ended

Jun. 30, 2020

13. Income Taxes

The following table sets forth the computation of the effective tax rate:


	Three Months Ended June 30,									Six Months Ended June 30,
	2020			2019			2020			2019
Income (loss) before income tax expense (benefit)	$	110		$	(117)		$	(129)		$	(350)

Income tax expense (benefit)	$	37		$	(29)		$	(31)		$	(76)

Effective tax rate⁽¹⁾	33.4		%	24.6		%	24.1		%	21.7		%

⁽¹⁾Effective tax rate is calculated using whole numbers.

For the three and six months ended June 30, 2020, the effective tax rate differed from the statutory federal rate of 21% primarily due to state income taxes, as well as unfavorable permanent differences including executive compensation disallowed under Internal Revenue Code Section 162(m). The effective tax rate increased in the three and six months ended June 30, 2020, as compared to the same periods in 2019, primarily attributable to the increased relative unfavorable tax impacts of the permanent differences on the annual effective rate.

For the three and six months ended June 30, 2019, the effective tax rate differed from the statutory federal rate of 21% primarily due to permanent differences including executive compensation disallowed under Internal Revenue Code Section 162(m) and nondeductible meals and entertainment expenses, as well as other recurring items such as the state tax benefit.

- 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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