XML 36 R22.htm IDEA: XBRL DOCUMENT

Income Taxes

9 Months Ended

Sep. 30, 2021

Note 15. Income Taxes

The following table sets forth the Company’s income tax provision for the periods indicated:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020

	(in thousands)
Income before taxes	$	37,646		$	7,078		$	56,977		$	11,379
Income tax provision		6,686			2,285			13,436			4,490
Net income	$	30,960		$	4,793		$	43,541		$	6,889
Income tax provision as a percentage of income before income taxes		17.8	%		32.3	%		23.6	%		39.5	%

The change in the Company’s effective tax rate for the three and nine months ended September 30, 2021, was primarily due to differences in pre-tax income positions and timing of discrete tax items.

Valuation Allowance

In assessing the need for a valuation allowance, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will be realized. Ultimately, realization depends on the existence of future

taxable income. Management considers sources of taxable income such as income in prior carryback periods, future reversal of existing deferred taxable temporary differences, tax-planning strategies, and projected future taxable income.

The Company continues to record a full valuation allowance on the net deferred income tax assets of its subsidiary AFP and will continue to do so until AFP generates sufficient taxable income to realize its deferred income tax assets.

For purposes of computing its annual effective tax rate, the Company did not benefit from its losses in the states where it files separately. This increased the Company’s income tax expense by $0.1 million and $0.3 million for the three and nine months ended September 30, 2021, respectively. The increase in the Company’s income tax provision for the three and nine months ended September 30, 2020 was $0.2 million and $0.4 million, respectively.

- 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.

+ References + Details