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Taxes on Income

9 Months Ended

Sep. 30, 2021

(9) 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 allowed 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 net 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. Net operating losses carried back to tax years 2013 through 2017 were 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.

At September 30, 2021 and December 31, 2020, the Company had a federal income tax receivable of $70,959,000 and $188,177,000, respectively, included in Accounts Receivable – Other on the balance sheets. During the three months ended March 31, 2021, the Company received a tax refund of $119,493,000, including accrued interest, for its 2019 federal tax return related to net operating losses being carried back to offset taxable income generated between 2014 and 2017.

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,
	2021			2020			2021			2020
Earnings (loss) before taxes on income:
United States	$	(325,369	)	$	19,246		$	(313,177	)	$	(476,382	)
Foreign		(225	)		28			(583	)		(282	)
	$	(325,594	)	$	19,274		$	(313,760	)	$	(476,664	)
Provision (benefit) for taxes on income:
Federal:
Current	$	(446	)	$	(33,690	)	$	(446	)	$	(189,994	)
Deferred		(55,772	)		23,350			(52,968	)		16,056
State and local:
Current		832			1,257			1,047			1,875
Deferred		(5,056	)		620			(3,480	)		(10,674	)
Foreign - current		—			44			7			80
	$	(60,442	)	$	(8,419	)	$	(55,840	)	$	(182,657	)

- 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