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Taxes on Income
 9 Months Ended
Sep. 30, 2020
Taxes on Income [Abstract]  
Taxes on Income
(10)
Taxes on Income


On March 27, 2020, the United States Congress passed and the President signed the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) into law to address the COVID-19 pandemic.  One provision of the CARES Act allows net operating losses generated in 2018 through 2020 to be carried back up to five years.  Pursuant to this provision of the CARES Act, the Company recorded a federal current benefit for taxes on income for the nine months ended September 30, 2020 due to carrying back net operating losses generated between 2018 and 2020 used to offset taxable income generated between 2013 and 2017.  This caused a reduction in the effective tax rate during the nine months ended September 30, 2020 as net operating losses carried back to tax years 2013 through 2017 are applied at a federal tax rate of 35% applicable to those tax years, compared to a 21% tax rate effective at September 30, 2020.  Net operating losses generated in 2018 and 2019 were used to offset taxable income generated between 2013 and 2017 taxed at 35% resulting in a tax benefit of $58,746,000 and a decrease in the Company’s deferred tax asset related to federal net operating losses of $89,358,000.  During the nine months ended September 30, 2020, the Company received a tax refund of $30,606,000 for its 2018 tax return related to net operating losses being carried back to offset taxable income generated during 2013. At September 30, 2020, the Company had a federal income tax receivable of $159,557,000 included in Accounts Receivable – Other on the balance sheet.


Earnings (loss) before taxes on income and details of the provision (benefit) for taxes on income were as follows (in thousands):

  
Three months ended September 30,
    
Nine months ended September 30,
  
   
2020
    
2019
    
2020
    
2019
  
Earnings (loss) before taxes on income:
                        
United States
  
$
19,246
    
$
64,550
    
$
(476,382
)
  
$
186,205
  
Foreign
    
28
      
(95
)
    
(282
)
    
(704
)
   
$
19,274
    
$
64,455
    
$
(476,664
)
  
$
185,501
  
Provision (benefit) for taxes on income:
                                
Federal:
                                
Current
  
$
(33,690
)
  
$
—
    
$
(189,994
)
  
$
—
  
Deferred
    
23,350
      
14,495
      
16,056
      
40,502
  
State and local:
                                
Current
    
1,257
      
1,675
      
1,875
      
4,820
  
Deferred
    
620
      
—
      
(10,674
)
    
—
  
Foreign - current
    
44
      
135
      
80
      
132
  
   
$
(8,419
)
  
$
16,305
    
$
(182,657
)
  
$
45,454