INCOME TAXES |
3 Months Ended |
|---|---|
Mar. 31, 2023 | |
| Notes to Financial Statements | |
| INCOME TAXES |
NOTE 9 — INCOME TAXES Tax Expense (Benefit) and Tax Rate For the three months ended March 31, 2023, the Company recognized income tax expense of $8.6 million for an effective tax rate of 25.0%. For the three months ended March 31, 2022 the Company recognized income tax benefit of $0.7 million for an effective tax rate of 21.9%. For the three months ended March 31, 2023 and 2022, 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 March 31, 2023, and December 31, 2022, the valuation allowance was $17.9 million and $15.3 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 March 31, 2023 and December 31, 2022, the Company did not have any outstanding current income taxes receivable. During the three months ended March 31, 2023 and March 31, 2022 the Company did not receive any income tax refunds or make any income tax payments of significance. The tax years 2019 through 2022 remain open to examination by the tax jurisdictions to which the Company is subject. |