INCOME TAXES |
9 Months Ended |
|---|---|
Sep. 30, 2022 | |
| Notes to Financial Statements | |
| Income Tax Disclosure [Text Block] |
NOTE 10 — INCOME TAXES Tax Benefit and Tax Rate For the three months ended September 30, 2022, the Company recognized income tax expense of $16.4 million for an effective tax rate of 19.7%. For the three months ended September 30, 2021 the Company recognized income tax benefit of $5.9 million for an effective tax rate of 13.5%. For the nine months ended September 30, 2022, the Company recognized income tax expense of $46.8 million for an effective tax rate of 20.0%. For the nine months ended September 30, 2021, the Company recognized income tax benefit of $18.8 million for an effective tax rate of 17.3%. For the three and nine months ended September 30, 2022 and 2021, the Company’s effective tax rate differed from the statutory Federal tax rate primarily by the impact of state income taxes and adjustments to the valuation allowance. Valuation Allowance Deferred tax assets are recorded related to net operating losses and temporary differences between the book and tax basis of assets and liabilities expected to produce tax deductions in future periods. The realization of these assets depends on recognition of sufficient future taxable income in specific tax jurisdictions in which those temporary differences or net operating losses are deductible. In assessing the need for a valuation allowance on deferred tax assets, the Company considers whether it is more likely than not that some portion or all of them will not be realized. As of September 30, 2022, and December 31, 2021, the valuation allowance was $15.2 million and $24.4 million, respectively, and relates primarily to state net operating losses and the disallowed interest expense limitation carryover. Income Taxes Receivable, Refunds and Payments As of September 30, 2022 and December 31, 2021, the Company did not have any outstanding current income taxes receivable. During the nine months ended September 30, 2022 the Company did not receive any income tax refunds and made federal income tax payments of $5.2 million. During the nine months ended September 30, 2021, the Company did not receive any income tax refunds or make any income tax payments of significance. The tax years 2019 through 2021 remain open to examination by the tax jurisdictions to which the Company is subject. |